How the Central Fund for SC, ST and OBC for West Bengal Goes Back!Without any Change in Indigenous, Aboriginal and Minority Life, There Would be NO Change in Bengal So Much So Hyped!

Indian Holocaust My fathers Life and Time- Two Hundred Seventy Nine

Palash Biswas

How the Central Fund for SC, ST and OBC for West Bengal Goes Back! Udayan Nambudari, a journalist by Profession and Politically TMC alleged that the Central Fund for SC, ST and OBC go Abegging every time UNUSED. At the end of the Financial year, the Fund is sent back to the centre. Meanwhile it remains DEPOSITED in the Bank and the Government use the INTEREST in other works which never relate to SC, ST and OBC Communities!

Without any Change in Indigenous, aboriginal and Minority Life, There Would be NO Change in Bengal So Much So Hyped!

We Celebrated Marichjhanpi Day today in Historical Bharat Sabha hall which had been once upon a time Glorified with the Presence of Tagore, Vivekanand, Desh Bandhu and Fazlul Haq. Gurudev named the Hall in central Kolkata as BHARAT Sabha highlighting the Passionate Indian Nationality modified from BANGAMATA of Bankim. But West Bengal based Brhaminical Hindutva Hegemony supported by SHUDRA Kayastha and Baidya doctored the Demography of Bengal and launched an Systematic scientific Ethnic Cleansing effecting Partition of India vesting the State Power and Economy in Zionist Brahmin Bania Raj co opting the Influential SC, ST , OBC and Minority Opportunist Unworthy elements and throwing the SC and OBC communities from east Bengal out of Bengal. They also succeeded to Marginalise the rural Land lords belonging to RAJPUT community who used to rule India since Vedic Civilisation killed our Ancestors demonising them and Unifying the Hindu Genocide culture evoking War Gods and Goddesses!

But Bengal being a NON Aryan Base INTACT even after the Fall of Buddhism, Cast Hindus were NON Existent until Pal Dynasty in and around Twelfth Century. Ballal Sen introduced Brahaminical Rituals in Bengal Importing Brahamins from Kannoj.

Hence, there had been NEVER any Rajput in Bengal. The Kayasthas and Baidyas covered the place and despite being SHUDRAS they not only are considered High Cast but lead the Genocide Gestapo.

Jyoti Basu was the name of the Phenomenon.

Arvind Dhali, now a BJD MLA in Orissa and Ex Cabinet minister and Nimai Sarkar another MLA in Orissa condoled Basu in Passionate words recently. Dhali told that the SC refugees have Forgiven Basu and Nimai Sarkar rather justified MARICHJHANPI Massacre saying that as the Chief Minister Basu had not no Option!

But the Victims and Eye witness of the Massacre of children, women and Old men in cold Blood declared in Baharta Sabha hall,` WE HAVE NOT FORGIVEN.

Dhali and Sarkar do not represent the SC OBC refugees nor they were trapped in Marichjhanpi to be Slaughtered.

What right they have to forgive Basu and his Gestapo?

They demanded Compensation, Rehabilitation and Prosecution against the Criminals of the Act for which No One from the Caste Hindu Brahaminical Civil society, Intelligentsia or media ever demanded justice in last Thirty One years in Brahamin Front Raj!

Even today, Journalist Udayan Nambudari who had been TMC Candidate in Dumdum Constituency flied from New Delhi to join Bharat Sabha Meeting attended by Parivartanwalas as well led by Professor Sunanda Sanyal. But no body did mention Marichjhanpi, the original Book written by Jagadish Chandra Mandal,worthy son of Mhapran Jogendra Nath Mandal who got Dr. BR Ambedkar elected to Constitution assembly with the assistance of Mukund Bihari Mallick. Jagadish babu was also present in the meeting. AB Thakur, who had been fighting Loksabha Elections from Mathurapur on BJP ticket was also present.

I would not name the Victims and Eyewitness present as I am afraid of Persecution Further. But the Parivartan walas are shedding tears for SC OBC Refugees and trying hard to maintain Status quo in Bengal to sustain Manusmriti rule just changing the Political faces. As they used well Peasants` uprising in Singur, Nandigram and Lalgarh to get personal Milage in Politics, they are all set to Encash MARICHJHANPI after Three Full decades. TMC used the MARICHJHANPI film in the last Loksabha elections to break SC and OBC vote bank bases of the Left Front! We must understand the laws of the Game!

Thus, Indian nationality and Bengali Nationality has been a all in all Micro Minority Brahmin Ritual since the days of Bankim and Tagore as the Marathi Manush in Maharshtra has been Hijacked by the Enemies of the Marathi Nationality whose supreme Icon Shivajee Maharaj had been an OBC!

The Demographic Alchemists were Never Exposed before Nandigram Genocide stripped off the Progressive Secular Masks of the Gestapo Masters of the Genocide culture!

Nandigram Phenomenon began right in January 1979, while Marxist supreme Icon Jyoti Basu and Left front leaders invited Dandakaranya Refugees in Bengal to Create a Vote Bank to upset the Apple Cart of Congress. But Emergency changed all equations as the Left front held on Power in Bengal since 1977 Mid term elections.

The real danger was the Revival of Dalit Muslim unity once again which had to be ABORTED and Basu and company did it very well in MARICHJHANPI.

The Phenomenon continues as every Victim since then even in so much so Globally Highlighted Singur, Nandigram and Lalgarh insurrections and even during the Food Movement and Naxal Uprising belonged to ST, SC and OBC Communities only and Only!

Meanwhile,Abject poverty drove a OBC woman to sell off her infant son for a mere Rs one thousand, but was arrested before she could do so. The woman, identified as Anjali Saha, was trying to sell off her child at Santipur area of the city Guahati today when local people informed an NGO whose workers called the police.On the other hand,another BRAHAMIN Mitra takes over as Revenue Secretary!After implementing the UPA government''s disinvestment plans for the past six months, Sunil Mitra today took over as the Revenue Secretary, less than a month before the Budget presentation in Parliament. "Mitra today assumed charge of the Revenue Secretary," an official in Revenue Department of the Finance Ministry said.

A crucial task of striking a fine balance between compressing fiscal deficit and promoting economic growth awaits Mitra at the North Block. His assuming office of the Revenue Secretary comes at a time when a debate raging on whether the government should roll back some of stimulus measures or not.

The Reserve Bank in its last quarterly policy review had advised the Finance Ministry to start rollback of some of stimulus measures. However, the industry has voiced its strong concern against any withdrawal till the recovery is on a strong footing.

The government had cut excise duty by six per cent, service tax by two per cent in phases from December 2008 and stepped up the Plan expenditure to provide stimulus to the then slowing down economy. However, this has hit the exchequer hard with fiscal deficit projected to widen to 6.8 per cent of the GDP this fiscal, whereas it should have come down to 3 per cent by the last fiscal, as per the Fiscal Responsibility and Budget Management Act.

Government taking steps to check food prices, Super DON of Brahaminical LPG Mafia Ruling Inda, Pranab consoles the Straving Aboriginal Indigenous India as he did so well in Barala (West Bengal)! The government is trying to manage the 'supply side' and 'demand side' in a bid to contain rising food prices, Finance Minister Pranab Mukherjee announced Sunday.

'The government is taking necessary steps to contain the food price inflation. There are two ways to manage inflation - supply-side management and demand-side management.

'RBI (Reserve Bank of India) has already done the demand-side management by raising the CRR (cash reserve ratio). It will suck out Rs.40,000 crore money from the banking system. This will ease liquidity pressure on the system,' Mukherjee said here.

He was speaking at a programme organised by the State Bank of India at the opening of the group's 20,000th ATM at Barala in Murshidabad district.

Mukherjee said steps were also being taken on the supply side.

'Steps are being taken for supply of essential commodities like sugar, edible oil and pulses. Open import has been allowed and some import is already happening in these commodities,' he said.

He added both public and private sectors can import essential goods. The public sector has already started it.

… the country could soon have a new model of central universities that offer preferential admission to students from minority communities which is not followed by any central varsity until now.

The proposal forwarded to the law Ministry for inspection explores a central university model in public-private partnership mode (instead of total central funding), to come up on land donated by the Wakf Board in Rajasthan, Bihar and Karnataka.

Although offering admissions to both majority and minority students, the land for these universities will be given by the Musilm communities with the minorities getting the maximum share of seats.

They are expected to come up at Ajmer, Kishanganj and Mysore and are expected to get the maximum share of seats in these new varsities.

The Minister of Minority Affairs Salman Khursheed confirmed that the concept has been borrowed from Dr B.R Ambedkar University, which came up to educationally empower SC students.

Odisha must take a cue and push for PPP based central universities – in addition to branch(es) of IGNTU – for its tribals.

DAVOS - A week of tense bankers, recovery hopes, star gazers

Enlarge Photo A woman walks past the logo of the World Economic Forum (WEF) at the congress...

The top executive was on a roll -- Barack Obama didn't know what he was doing, he didn't understand business, he didn't realize knee-jerk pronouncements could destroy jobs.

It was a private, five-minute, expletive-filled tirade against the U.S. president for this reporter's benefit. Welcome to one aspect of the World Economic Forum's annual schmoozefest.

This unique event -- a gathering of several thousand of the members of the world's business and political elites for debate, dealmaking and a fair amount of partying in a ski resort in the Alps -- is in many ways an annual celebration for capitalists.

But this is a very dysfunctional family.

For the second successive year, the recriminations arising from the financial crisis were a dominant theme.

Sure, the global economy looks better - people are no longer talking about financial Armageddon, while some CEOs are talking about investing more, buying companies and even hiring.

But many times when executives talked about a recovery, they also used words like "fragile" and then mumbled about whether the battle between bankers and politicians could upset it all.

The tone for this year's WEF was partially set by Obama's proposal on Jan. 21 to ban financial institutions with commercial banking operations from engaging in proprietary trading operations for their own profit. Coming against the backdrop of sky-high Wall Street compensation, only just over a year after huge government bailouts, it meant bankers' behaviour was going to be a major focus.

The release of the annual Edelaman Trust Barometer at Davos didn't help. It showed that college-educated, so-called "opinion leaders" around the world have lost a huge amount of trust in banks. In the United States, for example, the trust level has plummeted to just 29 percent of those surveyed from 68 percent in 2007.

PUBLIC ENEMY NUMBER ONE?

No wonder that Junichi Ujiie, the chairman of Japan's largest brokerage Nomura Holdings Inc, said he perceived bankers were seen in the West as "public enemy No.1."

"When I come to Davos I find a very big difference. Bankers and investment bankers in Tokyo are still respected," he said.

This year more top bankers turned up than last year, when it was too dangerous to risk being seen near a ski slope supping gluhwein and fondue just after being rescued with taxpayer cash.

Some of those who did come this time around kept a low profile -- Citigroup Inc CEO Vikram Pandit and Morgan Stanley Chairman John Mack were rarely seen around the Davos Congress Centre, though new Bank of America CEO Brian Moynihan was much more prominent.

A meeting between the CEOs of top financial institutions failed to find common ground over regulatory reform, according to several who attended. A push by Wall Street banks and some major European peers to battle back against politicians' attempts to bring in tougher regulations didn't get the support of some European commercial banks who prefer a more conciliatory tone.

By the Saturday, the bankers and regulators were reduced to using post-it notes and white boards in a joint brainstorming session that was inconclusive.

WORRY FOR BUSINESS

To executives in other sectors, this is concerning. If the banks and political leaders continue to fight then markets and bank lending might take a further hit, crimping the recovery.

Daniel Vasella, the chairman of Swiss drugmaker Novartis AG, said lack of trust in the system remained his big worry and made the risk of a double-dip slump "substantial".

Even some bankers are fast losing patience.

"I think the industry had better wake up before they get the wrath of God on them," said Joseph Perella, a veteran dealmaker and chairman of U.S. investment bank Perella Weinberg Partners.

Of course, there is always a possibility all this huffing and puffing may be a lot less relevant than the evidence of more than just green shoots in parts of the economy.

Luxury hotel chain Starwood Hotels & Resorts Worldwide Inc said during the week it expects to open 80-100 hotels this year and its CEO Frits van Paasschen said at Davos it was benefiting from pent-up demand as companies who cancelled their offsite sales meetings last year now reinstate them.

Even the paranoia among executives that they would get accused of organizing junkets at a time of job losses and government rescues has diminished, he said. "People are more discreet but they are not scared," he said.

The heads of top private equity firms, such as Blackstone Group LP, Carlyle Group and Kohlberg Kravis Roberts & Co, also said they were optimistic.

Vivek Ranadive, the CEO of business software firm Tibco Software Inc, said it was time to "quit whining".

But then again perhaps we should just consult the astrologers, like Geneva-based banker and industrialist Prakash Hinduja. When asked at the WEF about the investment climate he had no hesitation in declaring 2012 will be a very bad year in the U.S. and the years heading into it not much better: "The astrology guides us on this," he said.

Hinduja might want to do a little star-gazing for the bankers and regulators too.

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PM to inaugurate chief secretaries' conference

Prime Minister Manmohan Singh will inaugurate a two-day conference of state chief secretaries here Monday aimed at formalising the process of interaction with states and union territories.

The first of a kind conference would serve as a standing forum for exchange of views between the central and the state government and provide an occasion for interaction on internal matters, a government statement said.

'Issues relating to the latest trends in technology, emerging global challenges and opportunities and key security concerns and the role of state governments would be discussed. Global developments that have a bearing on the country would also be deliberated upon.'

Organised by the ministry of personnel, public grievances and pensions, the conference would be attended by Minister of State in the Prime Minister's Office Prithviraj Chavan, Cabinet Secretary K.M. Chandrashekhar and other senior officials.

Technology can improve quantity of agri-product: Joshi

Uttar Pradesh Governor B L Joshi today said that scientists should conduct their research according to need of farmers. "Industrialisation helps in economic growth but food grains can only be obtained from agriculture land.

Improved seeds, better irrigation facilities, new technology can help to improve the quantity of agri-product," Joshi said while inaugurating a Kisan Mela organised by CIMAP here. "The demand of food grain has increased in the entire world, hence we should lay stress on better productivity to ensure better supply of food grains," he said.

Joshi said for upliftment of farmers it was needed to encourage increase in productivity and develop agri-based industry.

Jaya Prada backs Amar Singh in Samajwadi row

Samajwadi Party Lok Sabha member Jaya Prada Sunday batted hard for former party strongman Amar Singh and lashed out at his detractors, saying they will be responsible if 'anything happened to him'.

'If anything happens to him (Amar Singh), those who have targeted him in the party will be responsible,' Jaya Prada told mediapersons here, coming out publicly in support of a friend whom the Samajwadi Party has now come to view as a liability.

Jaya Prada, Lok Sabha member from Rampur and a close associate of Amar Singh, however, hastened to say she was not quitting the Samajwadi Party. She also added that there was no need for Amar Singh to resign his Rajya Sabha seat.

She urged Samajwadi Party chief Mulyam Singh Yadav to check newly-appointed general secretary Mohan Singh, who she said had called Amar Singh 'mad' and 'shameless'.

The actor-politician, who was accompanied by some party legislators, said she would work with Amar Singh in Lok Manch, a non-political outfit, in raising problems of the common people.

She also came out in support of Amar Singh on the issues of the creation of a new state of Purvanchal, to be carved out from the present Uttar Pradesh, as well as the use of computers.

Jaya Prada said she differed from Samajwadi Party's official line on the women's reservation bill. The MP said she had backed the move to give reservation to women in legislatures while she was in the Telugu Desam Party but was later bound by the official line of the Samajwadi Party.

'As an individual, I feel it is important to encourage women (to contest elections),' said Jaya Prada.

Jaya Prada added that Amar Singh's resignation from party posts on health grounds had been politicised.

Amar Singh resigned from all party posts in the Samajwadi Party Jan 6. He is a Rajya Sabha member of the party.

Singh underwent a kidney transplant at a hospital in Singapore last year.

Meghalaya now has two chief ministers

Bizarre, but true. The northeastern state of Meghalaya now has two chief ministers - veteran Congress leader D.D. Lapang and the party's state unit chief Friday Lyngdoh.

And this has been made official by a formal government notification, not without a catch though - while Lapang is the chief minister with statutory authority vested in him, Friday Lyngdoh would simply enjoy the status and benefits of a chief minister without real power.

Lyngdoh was earlier the deputy chief minister in the 12-member council of ministers led by Lapang and continued to enjoy the status even afterwards.

'The rank and status of Lyngdoh has been upgraded from the rank of deputy chief minister to that of chief minister. He shall continue to function as political advisor to the Chief Minister,' the official notification read.

The weird political move to elevate Lyngdoh's status is seen as an attempt to quell any form of threat to the shaky Congress government. Recent reports said that Lyngdoh, along with seven other ruling party legislators, led a rebellion and even met senior central Congress party leaders in New Delhi demanding ministerial berths.

Technically speaking, Lyngdoh would simply enjoy the status of a chief minister with fringe benefits like security, perks and incentives, besides protocol as applicable to a chief minister.

'Lapang is the real chief minister, while Lyngdoh is chief minister without any power. It is a face-saving exercise and aimed at soothing an inflated ego of Lyngdoh who tried to engineer some dissidence,' a senior Meghalaya minister loyal to Lapang told IANS, requesting not to be named.

Instability marks politics in Meghalaya - the state has already seen three governments since the March 2008 elections, a situation characteristic of the mountainous northeastern state known for hop-skip-and-jump politics with legislators switching loyalties at the drop of a hat.

After the March 2008 assembly elections, Lapang was sworn-in chief minister of a Congress-led coalition government although he resigned 10 days later ahead of a scheduled trust vote, having failed to muster majority support.

Soon after, the NCP managed a deal with United Democratic Party (UDP) leader Donkupar Roy and formed the Meghalaya Progressive Alliance (MPA) led government in March 2008.

Barely 11 months down the line, Donkupar Roy's MPA government was dismissed and president's rule imposed in March 2009 following mounting political uncertainty after five legislators supporting the ruling government announced their decision to back the Congress, which was then in opposition in the state.

After two months of central rule, Lapang was sworn in chief minister of the Meghalaya United Alliance (MUA) coalition government with the UDP, a regional party, backing the hotch-potch coalition.

'In Meghalaya everything is possible. You are with one party at lunch, have dinner with a different party and are with a third party for breakfast. That is why there is so much instability in the state,' said A. Lyngdoh, a tribal community leader.

In the present 60-member legislature, the Congress has 28 legislators and enjoys the support of 10 UDP members.

The NCP, the main opposition, has 15 legislators.

Political instability is the hallmark of Meghalaya - the state has seen nine different governments with varied combinations of political parties, resulting in eight chief ministers between 1998 and 2009.

There were just two occasions when a chief minister was able to complete the full five-year term since Meghalaya attained statehood in 1972.

DAVOS - Fear, uncertainty cast pall over Russian business

Sun, Jan 31 06:30 PM

Enlarge Photo Attendees are reflected behind a logo at the congress centre of the Alpine resort of...

Russian businessmen at the World Economic Forum in Davos struck a gloomy note this week, with many uncertain about the country's direction and others warning a climate of corporate fear could hamper growth.

The wealthy businessmen who ran Russia 10 years ago under President Boris Yeltsin lost their political influence during Vladimir Putin's presidency in 2000-08.

During the global economic crisis, many have gorged on state bailouts.

The state now controls about 60 percent of the economy and President Dmitry Medvedev's call for modernisation to lessen the dependency on oil is falling on deaf ears as entrepreneurs are too scared to show initiative after years of what they see as state bullying.

German Gref, CEO of Russia's largest lender Sberbank, was the only Russian in Davos who spoke openly about the mood of fear gripping the private sector since the state takeover of oil major YUKOS several years ago.

Gref, who also sits on the board of Russia's largest private oil firm LUKOIL, said that since the YUKOS affair, "the main issue on LUKOIL's agenda has been not development, but self-preservation".

"For me, it was a shock to learn that," Gref told an audience of investors, as LUKOIL's head and shareholder Vagit Alekperov looked on. Gref then called for a push to privatise state assets, suggesting a start with the bank he heads.

YUKOS assets were nationalised and former CEO Mikhail Khodorkovsky jailed for tax evasion after a protracted legal battle that has become a symbol of the fear and uncertainty governing business is Russia.

Even the word YUKOS is taboo and officials and other businessman rushed to play down Gref's words.

"It is for the government to decide," about bank privatisation, said another state banker Andrei Kostin, CEO of second largest bank VTB. Finance Minister Alexei Kudrin said that the sale was "too early to even talk about."

"It was very bold of Gref to say that," said another businessmen, who declined to be identified.

Gref, a prominent political and business figure, drafted the liberal reform programme for Vladimir Putin's first presidential term. His plans were implemented but then partly reversed during the second term, with the YUKOS takeover seen as a turning point towards more authoritarian policies.

Prime Minister Putin, whose speech in Davos on the state of the global economy last year was met with scepticism by international investors, did not come to the gathering this year -- but even in his absence the businessmen did not talk freely.

"There is no modernisation. To carry out modernisation you need leadership and there is no leadership," said the head of a large Russian company. He declined to be identified, saying he did not want to put his business at risk.

"I have thousands of people working for me."

NO MIDDLE GROUND

The depth of Russia's economic troubles last year brought new reform plans, with officials loudly talking about a new wave of privatisation and even political liberalisation, but rising commodity prices have put those ideas on the back burner.

Anatoly Chubais -- the architect of Russia's first wave of privatisation who now heads a state firm tasked with developing the hi-tech sector -- was among those issuing a stark warning.

"It is either modernisation or degradation. There is no middle way for Russia," Chubais told Reuters.

Conversations with Russian delegates at Davos showed there was no common vision of what the modernisation should mean.

"It is your ability to compete in the market which tells how "modern" you are. But I would first concentrate on cutting excess costs," Oleg Deripaska, CEO of the world's biggest aluminium firm UC RUSAL, told Reuters.

Deripaska, whose business empire was bailed out by the state, was humiliated by Putin in front of TV cameras during the prime minister's visit to one of his factories last year.

"I think that the best modernisation is the construction of roads," said Mikhail Shamolin, CEO of the country's biggest telecom company MTS.

Finance Minister Alexei Kudrin offered his own plan of reform at Davos, focusing on improving the efficiency of state spending to achieve 20 percent in real term savings within two years. He was vague on details.

To compensate for their fears at home, however, Russian businessmen descended en masse to a Ukrainian presentation -- where most felt free to crack jokes about messy politics across the border.

(Editing by David Cowell)

Gleb Bryanski

2006 WEST BENGAL ASSEMBLY ELECTIONS & MINORITIES

“I see clear as daylight that there is one Brahma in all; one Shakti dwells in all; the only difference is of manifestation. Unless the blood circulates over the whole body: has any country risen at any time? If one limb is paralyzed then even with the other limbs whole not much can be done with that body: know this for certain.”

Swami Vivekanand

“There can be no stable equilibrium in any country without fair treatment of minorities”.

Jawaharlal Nehru

In the context of the forthcoming legislative assembly elections in West Bengal, it is important to place before the people and the political parties the situation and aspirations of the minorities in the state.

It is hoped that all the political parties would have framed their election manifestos taking such issues into account.

It is important to emphasise that minorities in West Bengal, namely, Muslims, Sikhs, Christians, Buddhists and Jains, are not separate from the larger human community of the state. The problems and aspirations of the common people of Bengal – are the problems and aspirations of the minorities.

The struggle for a truly secular, democratic, poverty-alleviating, human development advancing society and government – is the struggle of all the people of West Bengal and India, including the minorities. And at the conclusion of any detailed investigation on the specific problems and crises of particular communities, e.g. Muslims or Christians, the analysis emerging would only be that poverty must be overcome, quality education must be delivered, mass awareness and empowerment, participation, enfranchisement must all be furthered. These are the key issues for all Indians.

The specific need for a focus on minorities is because true equality and fairness does not yet characterise public life in India and West Bengal today. The solution is for true democracy and development to reach down to the last person of the minority community, in step with reaching the last person of any community.

Minorities and most particularly Muslims are today facing acute socio-economic and educational deprivation, institutionalised denial of equal opportunities, and are mired in poverty, illiteracy and all-round backwardness. They live in a situation lacking in any hope, with disillusionment about political parties and governance. There is a crisis of leadership, in the sense of articulation of and action on the key issues, with transparency, integrity and persistence.

For every poor Muslim, there is also a poor Dalit, or a poor Adivasi. In as much as the whole governance and development system exludes the poor Dalit and Adivasi, and is unable even after close to 60 years of freedom to reach them, so does it exclude minorities and Muslims in particular.

The vision of an India that gives equal and fair treatment to its minorities is a vision for a secular democratic India.

Socio-economic and human development

The WBHDR states: “… SC, ST and Minorities together account for more than half the population, and these are also the three poorest groups in West Bengal.”

Nevertheless the WBHDR fails to make any meaningful observation about the real condition of minorities and Muslims in the state.

The foremost and immediate need is for a detailed research study to be undertaken on the socio-economic and human development status of minorities in West Bengal, and in particular Muslims who form the overwhelming majority of West Bengal’s minorities. The expertise of the United Nations agencies should be taken in this task.

Based on such a survey, a special task force must be constituted to prepare a comprehensive socio-economic and educational development plan that can break the poverty, isolation and backwardness of Muslims. Such a plan must seek to integrate the development opportunities for Muslims with those for all communities in the state, and provide rapid equal means for advancement to all sections.

Common Civil Code

Though the Left Front govt has been in power in West Bengal for almost 30 years now, and the state has a large population belonging to minorities and especially Muslims, nevertheless, there has been no attempt to advance the ideal of a uniform civil code through a concrete formulation or proposal. There has been only inaction, though occasional lip-service to the subject. In the absence of a concrete formulation, the forces of communalism are only strengthened, who use the issue of uniform civil code, or purdah, as a weapon to demonise Indian Muslims.

It is vital that the government elected must follow-up is avowed commitment to a uniform civil code in the form of a concrete draft proposal for a uniform civil code in India. The challenge of formulating a common civil code, which is non-communal, but is an expression of the constitutional provisions for equality, secularism and democracy, is a challenge that must be met and fulfilled.

Enfranchisement and Adequate Representation

It is vital for minorities to effectively participate in the electoral and governance process and be adequately represented in panchayats, urban local bodies, state legislatures and parliament.

In this context, the constituency delimitation exercise has only been a means for depriving minorities and especially Muslims of fair representation among elected representatives. When constituencies are defined, this often has the result of breaking up a large location-concentrated Muslim voter population and dispersing them among a number of electoral constituencies. This then makes it further impossible for the problems and aspirations of Muslims to reach the corridors of power and find effective redress.

Just as constituencies are reserved, and rightly so, for Scheduled Castes and Scheduled Tribes, so must there be a reservation of constituencies for Muslims. In several parts of India and West Bengal also, the socio-economic status of Muslims is in fact even lower than that of Scheduled Castes and Scheduled Tribes.

In localities where there is a large concentration of Muslims, and where the constituencies have been come to be reserved for SC/ ST, there needs to be a thorough study undertaken for ensuring that fair representation is not thwarted.

Rural development

In March 2004, the Department for International Development DFID published its Country Plan CP for India. Building upon the Country Plans (CPs) State Assistance Plans (SAPs) prepared in consultation with the State Governments, Civil Society and other development partners reflected state level priorities. DFID’s State Assistance Plan for West Bengal for 2004-2007 outlines an “alternative economic vision” for the state with emphasis on ensuring basic minimum needs are met for everyone. State Assistance Plan for West Bengal 2004-2007 observes that every third person in rural Bengal continues to live in poverty and four districts Murshidabad, Birbhum, Bankura and Purulia have poverty rates above 40 percent. There are pockets of high poverty rates in Uttar Dinajpur and West Medinipur.

The state-level figures mask significant intra-state variations. According to the West Bengal Human Development Report (HDR) 2004, the four most deprived districts on various income, gender and human development indicators are Maldah, Purulia, Murshidabad and Birbhum. These districts account for about one-fifth of the state’s population (half of it being Muslims who can rightly be called the deprived social groups), and addressing their needs would push the state up the ladder among the 15 major states in the country. In terms of economic groupings, agricultural labourers (constituting about 38 percent of total households) remain the poorest section of the population, and have also experienced the lowest decline in poverty rates in the last decade. The challenge will be to use renewed political, administrative and financial measures to focus on various dimensions of inequality.

The large scale acquisition of agricultural land in rural areas inhabited by Muslims primarily around Kolkata and Howrah for private real estate development is an injustice to the poor peasants. A comprehensive formulation to include the dispossessed in the development processes in the acquired area is needed to check the demographic imbalance around the urban areas.

Employment, livelihood & Reservations

Given the acute under-representation of West Bengal minorities and especially Muslims in all levels of public employment and in institutions of higher and professional education, the time has come for reservations for poor Muslims, in line with reservations for SC, ST and OBC. Minorities Development Finance Corporation provides loans for self-employment to the minorities and during the years (1997-1998-1999) on an average, annually about 1500 Muslims benefited from this scheme. This was supposedly to compensate for the low absorption of Minorities in Government jobs. The ratio for beneficiaries among Muslims then came to about 1:10,717. Even the figures released for the year 2003-2004 shows that the beneficiary ratio is around one person/unit in about every seven thousand (1:7033). There are 2995 number of beneficiaries out of the total 2.10 crore Minority population and the average amount per head comes to around 4000 Rupees. Alternate opportunities in the small scale and cottage industries should also be made available to people belonging to minorities.The example of Karnataka needs to be replicated, where reservation in govt jobs and educational institutions followed an exhaustive study on socio-economic status of Muslims by a high-powered committee. This example also proved that it is not necessary to amend the constitution to effect reservations for poor Muslims.

Education

It is estimated that close to 30 lakhs children of school-going age in West Bengal are not enrolled in schools. A sizeable number of such children would belong to the Muslim minority. Only about 3% of Muslim school-going children, and especially those belonging to the most socio-economically vulnerable section, go to madrasahs. It was observed in the State Assistance Plan for West Bengal, 2004-2007 that the recent trends show that the state will not be able to achieve the Millennium Development Goals (MDGs) or the Universal Primary Education by the year 2015. According to UNDP press release the first WBHDR states that “never enrolled children tend to be more concentrated among the lower income groups and the Scheduled Tribe and Minority populations”.

The West Bengal Primary Education Act, 1973 must be amended, as recommended by the West Bengal Minorities Commission.

The West Bengal School Service Commission (Amendment) Bill, 2006 passed on 20.02.2006 withdrawing the exemptions provided to the Christian Missionary Schools from the purview of School Service Commission Act 1997 vide Section 15 of School Service Commission Act, 97 for administration of their schools in keeping with their Minority Rights should be amended so that the linguistic and religious minority schools may be allowed to appoint their staff and teachers and run their institutions in conformity with the rights guaranteed to them under Article 30 of the constitution of India.

The Muslim community considers education to be very important for girls and boys. However, given the experience of poor Muslims of a bias in the labour market there has been a tendency for boys to become disinterested in further education after primary education. Hence initiation of appropriate vocational training which enable self-employment would significantly counter-act the disincentive to seeking education. This is an important issue for immediate action.

The current minimum age of marriage of Muslim girls is 14 years. In most cases, Muslim girls are married off by the age of 16. This often results in withdrawal of the girls from schooling. Besides concern for the sound health of mothers and their children, the incidence of desertion of such young married girls is not insignificant. Left alone to fend for themselves and their infants, and lacking in adequate education or marketable skills, these girls must face a harsh existence. Increasing the age of marriage of girls through legislation based on dialogue with community elders and leaders is essential.

Similarly, creating opportunities for Muslim women’s employment and self-employment would have an immense transformative effect on the current situation.

The need of the hour is the opening of primary schools in the localities where there are large numbers of Muslims living and working. The Sarva Shiksha Abhiyaan, whose implementation continues to be a travesty in this state, must be thoroughly overhauled and used as a powerful means to reach out basic education to all.

The educational scenario of the Urdu speaking community in West Bengal, particularly in Kolkata and Howrah, is extremely depressing. This is a revealing instance of institutionalised neglect. If this linguistic minority in this great metropolis is to be saved from total disaster it will demand formulation of an action programme in the field of education. Establishing schools of high standard is the need of the hour. Facility for teaching in Urdu at the primary stage, and using Urdu as second language at the higher stage will be quite rational.

Waqf land

The Muslim community in West Bengal is endowed with a sizeable amount of land in different parts of the state. In particular, in urban areas, where the community is languishing in regards to education and housing, it is only logical that this land resource be utilised for advancing the all-round development of this backward and poverty-ridden community. In fact, WAKF land is the only remaining resource available to the community offering some hope of a better future.

However, the situation on the ground is that owing to prolonged institutionalised neglect, WAKF land has been encroached upon, taken possession of by individuals and private promoters / real-estate developers. The conversion of mosques into private dwellings and commercial premises is symbolic of the glaring violation of the rule of law. The state cannot be a mute witness to such alienation and illegal possession of WAKF land.

A detailed survey of all WAKF land in the state must be completed immediately. The results of this survey must also be made available through the internet to all.

When the state has an explicit department for WAKF affairs, it must take the initiative in recovering alienated and illegally occupied WAKF lands. It must also take the active initiative in organising the use of such land for setting up much-needed educational institutions and low-income housing estates.

Through the wholesome use of WAKF land lying inside localities with non-Muslim people, it would be possible to break the isolation and ghettoisation that exists in urban areas. Hindus and Muslims can live together in the same neighbourhood, their children can study together in the same good schools. And together strive for a better India.

Women’s question

The issue of Muslim women suffers from purposeful distortion. On the one hand is the continuing illiteracy, poverty and lack livelihood of poor women in a male-dominated society; and on the other hand is the practice of “purdah” which is apparently frowned upon by so-called progressive leadership.

When large-scale opportunities are available to all women for education, employment and all-round empowerment, practices such as “purdah” would altogether cease to be of much significance.

Healthcare

While there is an acute dearth of reliable disaggregated data, existing studies suggest that there is a significant differential between the infant and maternal mortality rates of Muslims and Hindus in urban areas. The principal reason for this is that the overwhelming majority of the Muslim community live in poverty-ridden, mal-nourished, environmentally degraded, overcrowded slums, lacking in adequate water and sanitation, where incidence of water-borne and gastrointestinal diseases is high. The DFID’s State Assistance Plan for West Bengal admits that the state is unlikely to meet the targets of net primary education or child malnourishment.

According to the Census of India, less than half of urban households have a drinking water tap within their residential premises, even less have a water closet, and just over a third have closed drainage. This has come to be simply accepted as the inevitable and immutable quality of living for millions of our fellow-citizens. And this is the reality for most Muslims. More than one in five people do not have access to safe drinking water, only about 30 percent of people in rural areas have access to sanitation facilities.

Women bear the responsibility of fetching water for their household needs. Poor women in rural areas, without easy access to water sources spend hours every day collecting water, affecting their productive potential and their health. In urban areas, women and children often need to wait in long lines to get water from municipal standpipes or hand pumps. Women play a central role in water management. Reducing the amount of time women spend collecting water allows for increased opportunities for schooling, taking care of children, employment and self-development.

The environmental conditions in towns and cities are continuing to deteriorate because the middle-class with the assistance of the state is actively participating in the exclusion of large sections of the population from access to basic services. The consequence of such monopolisation of state resources and benefits is the complete disregard of risks of epidemics and endemic diseases. Govt policies are oriented to crisis intervention rather than institutionalising through new approaches, methods and attitudes a system of maintaining infrastructure and implementing progressive policies. Until the poor are able to satisfy their daily needs for food and shelter, their own active participation in demanding that the state provide them equitable access to water, sanitation and other basic services will be severely limited.

7 of the 8 Millennium Development Goals to which the Govt of India is committed are:

Eradicate extreme poverty & hunger:• Reduce by half the proportion of people living on less than a dollar a day• Reduce by half the proportion of people who suffer from hunger Achieve universal primary education:• Ensure that all boys and girls complete a full course of primary schoolingPromote gender equality and empower women:• Eliminate gender disparity in primary and secondary education preferaably by 2005, and at all levels by 2015

Reduce child mortality:• Reduce by two thirds the mortality rate among children under fiveImprove maternal health:• Reduce by three quarters the maternal mortality ratio Combat HIV / AIDS, malaria and other diseases:• Halt and begin to reverse the spread of HIV/AIDS• Halt and begin to reverse the incidence of malaria and other major diseases Ensure environmental sustainability:• Integrate the principles of sustainable development into country policies and programmes; reverse loss of environmental resources • Reduce by half the proportion of people without sustainable access to safe drinking water• Achieve significant improvement in lives of at least 100 million slum dwellers, by 2020 All of the above are directly and acutely relevant to the minorities in West Bengal and especially the Muslim. Improvement in the quality of life of the Muslims would mean in specific terms the attainment of the above goals.

The next elected govt. of West Bengal must commit itself to the realisation of these Millennium Development Goals in the state, and prepare and present a concrete action plan for this.

Housing

The large majority of the Muslim population of Kolkata and Howrah live in bastis. The Thika Tenancy Act which governs land tenure in bastis is a severe impediment to housing development for the low-income sections. At the same time, illegal construction is rampant in the basti areas.

An appropriate new legislation must be enacted in place of the existing Thika Tenancy Act, with the objective of facilitating large-scale housing construction. The state would be the enabling agency for such a process. The goal must be the granting of legal title to improved new dwellings to the erstwhile basti households. Just as “land to the tiller” was the slogan in villages, “house to the dweller” must become the slogan for a programme of pro-poor urban land reform.

It is incumbent upon the state to ameliorate the plight of the poor, illiterate and the under-privileged in the bastis or slums who are currently sheltered in the upper stories of the illegally constructed buildings that have come up when the state turned a blind eye to them.

Large scale acquisition of thousands of acres of land belonging to minorities particularly Muslims in Kolkata and Howrah suburbs and its allotment to foreign multinational companies will not only affect the demographic profile but also create landlessness, poverty and chronic unemployment among them. The need is therefore to stop any further acquisition at once and prepare a scheme wherein the displaced persons are included in the development processes in the area acquired.

No equality of employment for West Bengal MuslimsBy Mohammad Ashfaque, Calcutta

Article 15 of the Constitution of India prohibits ‘discrimination on grounds of religion, race, caste, sex, place of birth or any of them.’ Article 16 of the Constitution guarantees ‘equality of opportunity in matters of employment.’ Article 30 of our Constitution confers ‘Right of minorities to establish and administer educational institutions of their choice.’

Though our Constitution has laid down a general rule that there shall be an equality of opportunity for all citizens in matters relating to employment or appointments to any office under the State, these fundamental principles have literally remained mere pious declarations and are being flagrantly violated. Muslim job seekers, who have registered their names in the employment exchanges in West Bengal, have for more than two decades, suffered from continuous discrimination and unfavorable bias in the matter of submission of names to the employers by the employment exchanges. They are denied even the opportunity of being properly considered by the employers for placement against existing vacancies.

During the tenure of the last Congress Government in West Bengal (1972-77), led by the then Chief Minister, Shri Siddhartha Shankar Ray, some positive steps were initiated to solve the unemployment problem of the state and to ensure equality of opportunity to all citizens including members of the Muslim community in matters of recruitment in government jobs.

Apart from taking steps for adequate representation of all communities in state services Shri Siddhartha Shankar Ray had ensured that at least one Muslim police officer was posted in each and every Police Station in West Bengal. Prior to this the members of Muslim Community were very poorly represented in services under Calcutta and West Bengal Police Forces. The steps taken by Ray, had created confidence among the minorities and inspired them to take a bright and hopeful view of things to come and to expect that things would improve and they would no longer be kept isolated from the national mainstream.

Immediately after coming to power, by an executive order, the CPI(M) dominated Left Front government decided to process all recruitment through the employment exchanges. The annual reports of the Government of West Bengal - 'Labour in West Bengal' - published annually by the Labour Department of the state government present a dismal picture of the poor performances of the employment exchanges and the State Directorate of Employment, West Bengal.

During the last ten years (1990 to 1999) the number of registered unemployed on the live registers in West Bengal increased from 48,20,331 at the end of 1990 to 55,55,952 by the end of 1999. During these ten years 47,66,176 new job seekers had registered their names with the Employment Exchanges in the State. Names of 21,09,560 (40 % of the average number of job seekers on the live register) were submitted during this period to the employers for consideration against vacancies.

During the same period (1990 to 1999) 291,768 Muslims had come forward to register themselves but the names of only 70,945 Muslims (10.58 % of the average number of Muslims on the live register) were submitted to the employers for consideration in connection with appointments.

The average number of job seekers on the live register of employment exchanges in West Bengal, during the last ten years, was 52,72,997. The average number of Muslims on the live registers during this period was 6,70,443 (12.71 % of the total on the live register). Out of this total average of 52,72,997, the average number of submission during this period was 2,10,956 (4 % of the total job seekers of all categories on the live registers) per annum. In the case of Muslims out of the average number of 6,70,443 (12.71 %) Muslim Job Seekers on the live registers the average submission was only 7,095 (1 % of the total names of Muslim Job Seekers on the live registers) per annum.

Despite the fact that about 12.71 % of the registered job seekers, available on the live register of employment exchanges were Muslims the total 21,09,560 names submitted during these ten years (1990-99) to the employers for consideration against vacancies included the names of only 70,945 Muslims (3.36 % of the total submissions).

During these ten years (1990-99) out of the 93,156 registered unemployed persons placed in employment through the employment exchanges only 4,232 (4.54 %) were Muslims. Out of the total 21,09,560 submissions made by the employment exchanges during the ten year period 93,156 persons (4%) had succeeded in getting placements in Jobs. In the case of Muslims out of the 70,945 names of registered Muslim job seekers, whose names were submitted to the employers during these ten years, 4,232 (6 %) were successful in getting jobs through the employment exchanges.

Success rate in the case of Muslims (4,232 out of 70,945) i.e. 6 % of the total Muslim names submitted for consideration by the employers) was, therefore, higher than the average success rates in all categories (93156 out of 21,09,560 i.e. 4 % of the total submissions ).

This shows that the Muslim job seekers are not in any way inferior to others. Muslims of West Bengal do not lag behind others in meeting the criteria for being selected for jobs but still they are denied equality in employment opportunity. They are placed in a disadvantageous position simply because of bias and prejudice in matters of submission of names. The concerned authorities of the state government are not doing proper justice with the registered Muslim job seekers in the matter of submission and are submitting very few names of Muslim job seekers for consideration by the employers. This discrimination has been going on for a long time. For the Muslims in West Bengal the Constitutional guarantees of equality in employment opportunity have, therefore, proved to be false promises. This has given rise to serious resentment and frustration among the unemployed Muslims of West Bengal. Their confidence in the Employment Exchanges and the Employment Policy of the State Government has been badly shaken. This is evident from the fact that over the years the number of unemployed Muslims coming forward to register their names in the Employment Exchanges has fallen from 47,908 in 1990 to an average of 27,096 per year during 1991-99. During this period more than 1,60,000 frustrated Muslim job seekers did not renew their registrations or had got their names cancelled from the live register of employment exchanges.

According to the Census reports, population of Muslims in West Bengal, at the time of 1991 census, was 1,60,75,836 (17 % of the total 9,52,22,853 Muslim population of India).

So far as concentration of Muslim population is concerned West Bengal is second only to Uttar Pradesh, which has a Muslim population of 2,41,09,684 (25% of the total Muslim population of India). 1,60,75,836 Muslims in West Bengal constituted 24 % of the total population of the State. Scheduled Castes account for 24 % and Scheduled Tribes for 6 % of the population of the State in 1991. The population of Other Backward Classes in West Bengal is estimated to be about 10 % of the total population of the State. Under the Government orders, 37 % of the jobs in the West Bengal State services are reserved for Scheduled Castes (22 % ), Scheduled Tribes (6%) and Other Backward Classes (9 %).

Though Muslims are inadequately represented in the State services there is no provision for any reservation for them in West Bengal. Some other States like Kerala have provided statutory reservations for Muslims in jobs and admissions in educational institutions. Muslims account for 23% of the population of Kerala. Provisions for reservation have been made for them by the Government of Kerala under Articles 15 (4) and 16 (4) of the Constitution of India and there has been no legal hurdle to such reservations.

Muslims, Scheduled Castes, Scheduled Tribes and Other Backward Classes account for approx. 64 % of the total population of West Bengal. Others (excluding Muslims, SC, ST, & OBC) account for only 36 % of the total population of the State. This 36 % population has received the benefit of 62.81 % of the submission of names by the employment exchanges for consideration by the employers and 62.43 % of the placements in jobs made through the employment exchanges in West Bengal during 1999. Muslims constituting 24 % of the population of the State and accounting for 13 % of the live register of employment exchanges received the benefit of only 4.18 % of the submissions and 4.95 % of the placements made during 1999 through the Employment Exchanges in West Bengal. 2,49,769 names were submitted to the above employers by the employment exchanges during 1999 which included the names of only 10,458 (4 % Muslims). No wonder the Muslims got only 717 (4.95 %) placements during 1999.

A pertinent question agitating the minds of the Muslims of West Bengal is whether the fundamental rights and constitutional guarantees embodied in our Constitution are mere illusion.

Apart from denial of equality of opportunities in matters of employment, Muslims of West Bengal are further aggrieved because they find that even the constitutional rights 'to establish and administer educational institutions of their own choice', guaranteed under Article 30 of the Constitution , is denied to them by the state government. The case of Milli Al Amin College is an example of the arbitrariness of the state government. This College has been built in Calcutta as a 'Minority Institution' with donations received from munificent Muslims and assistance from the Al Amin Educational Trust, Bangalore. The state government has not contributed anything.

The College was built in 1992 but the state government has refused to recognize Milli Al Amin College as a Minority Institution. On the other hand the state government has been trying to impose such conditions which tend to deprive the Muslim community of the substance of their rights guaranteed under Article 30 (1) of the Constitution.

The above factual analysis dispel the myth that the Left Front Government is friendly with the minorities. It does not auger well that while we have 'solemnly resolved to constitute India into a Sovereign, Socialist Secular Democratic Republic and pledged 'to secure to all citizens justice and equality of status and of opportunity' the religious minority in West Bengal is left to feel that it is not only inadequately represented in the services under the State but is also being denied equality of opportunity in employment and education. The members of the Muslim community in West Bengal have well grounded reasons to be aggrieved and to feel that proper justice is not being done with them by the State. The matter should receive serious attention and consideration by all concerned.http://www.milligazette.com/Archives/01-10-2000/Art16.htm

COVER STORY

Community on the margins

VENKITESH RAMAKRISHNAN

The Rajinder Sachar Committee finds that the Muslim community in India is deprived and neglected, and makes far-reaching recommendations.

MUKHTAR KHAN/AP HOMELESS MUSLIM WOMEN sleep on the pavement in Srinagar. Incidence of poverty is high amongst the community, especially in urban areas.

ISSUES relating to the social, economic and political status of India's Muslim minority community have been a matter of debate for several decades; quite a few governments have initiated studies on the community and evolved administrative measures on their basis. As early as the 19th century, Monstuart Elphinstone, the legendary British administrator, put it on record that special measures were required to uplift the backward sections of the Muslim community. Studies conducted by the British administration led to the passage of a government Act in 1935 offering Dalit Muslims reservation facilities along with Dalit Hindus. Nearly two and a half decades ago, Prime Minister Indira Gandhi constituted a 10-member high-power panel on Minorities, Scheduled Castes (S.C.s) and Scheduled Tribes (S.T.s) and other weaker sections, headed by Dr. Gopal Singh. In its report submitted on June 14, 1983, the Dr. Gopal Singh Committee maintained that there was a "sense of discrimination prevailing among the minorities" and that it "must be eliminated, root and branch, if we want the minorities to form an effective part of the mainstream".

The examination of the social, economic and educational status of the Muslim community by the seven-member high-level committee headed by Justice Rajinder Sachar, constituted by the Manmohan Singh government, and the publication of its report in November represents, on the face of it, a continuation of the debate on the community. Even so, on account of a variety of factors, the work of the Sachar Committee and its report have greater significance and relevance than earlier initiatives.

To start with, it is the first systematic study of the Muslim community in independent India. Earlier commissions, including the Dr. Gopal Singh Committee, looked into issues relating to the Muslim community along with those relating to other segments of society, such as the S.Cs, S.Ts and other weaker sections. Obviously, the Sachar Committee was expected to have an enhanced focus on the Muslim community and this is reflected in its frame of reference and examination processes.

The processes of the committee were essentially based on three types of issues relating to identity, security and equity, with special emphasis on issues of equity. Within this broad perspective, a wide range of specifics were covered by the committee, such as perceptions about Muslims; the size and distribution of the community's population; indices of the community's income, employment, health, education, poverty, consumption, and standards of living; and the community's access to social and physical infrastructure. The committee also made a meticulous study of the perpetuation of the caste system in the Muslim community.

The committee collated data from across the country and received detailed oral and written presentations from 13 States that have significant Muslim populations. It also collected data from the Indian Air Force and the Navy on the number of Muslims in these services but did not include the same in the report on a specific request from the Defence Ministry .

The marshalling of such substantial data was in marked contrast to the processes of earlier commissions. The report of the Dr. Gopal Singh Committee stated that data were not available in any public office about the benefits accruing to the religious minorities. As such the committee had formulated its observations with data from only 80 districts.

The context in which the Sachar Committee undertook its work is significant. The sustained campaign of the Hindutva-oriented Sangh Parivar and its political arm, the Bharatiya Janata Party (BJP), accusing secular parties of promoting a policy of "Muslim appeasement" and insinuating that the Muslim community was politically and socially "anti-national" provides this. The Hindutva campaign developed steadily from the mid-1980s, when the Sangh Parivar advanced its Ayodhya Ram Mandir agitation, and has reached a stage today where leaders such as Pravin Togadia of the Vishwa Hindu Parishad (VHP) castigate all Muslims as global terrorists. Madrassas run by the community were portrayed as "terrorist manufacturing units" as part of this castigation. The very formation of the Sachar Committee, in March 2005, was characterised by these forces as yet another act of Muslim appeasement.

The committee report has taken note of this context. It points out that Muslims "carry a double burden of being labelled `anti-national' and as being appeased at the same time". The report further states, "While Muslims need to prove on a daily basis that they are not anti-national and terrorists, it is not recognised that the alleged appeasement has not resulted in the desired level of socio-economic development of the community." The single most important result of the committee's detailed exploration is the assertion of the latter fact. On the contrary, the report points out that "the community exhibits deficits and deprivation in practically all dimensions of development". The report adds that "by and large, Muslims rank somewhat above S.Cs/S.Ts but below Hindu OBCs [Other Backward Classes], Other Minorities and Hindu General [mostly upper castes] in almost all indicators considered."

Development Deficit

One of the major contentions of the report is that almost 60 years after Independence the country has failed to ensure participation in governance for its largest minority group. The report begins its study on "Government Employment and Programmes" with the observation that "in a pluralistic society, a reasonable representation of various communities in government sector employment is necessary to enhance participatory governance". However, the data presented and analysed by the report show that the country is far from attaining such a goal. Though Muslims have a share of 13.4 per cent in the country's population, their representation in government jobs is a mere 4.9 per cent.

In the elite civil services, comprised of the Indian Administrative Service (IAS), the Indian Foreign Service (IFS) and the Indian Police Service (IPS), Muslim representation is as low as 3.2 per cent. Members of the community constitute a mere 4.5 per cent of the employees of the Railways and 98.7 per cent of them are positioned at the lower levels. Under-representation is acute in States in which Muslims constitute large minorities. In West Bengal, Uttar Pradesh and Assam, where Muslims form 25.2 per cent, 18.5 per cent and 30.9 per cent of the population respectively, the representation of the community in government jobs is as low as 4.7 per cent, 7.5 per cent and 10.9 per cent respectively.

The report also points towards the fundamental social condition that has created this situation. Muslims across the country have less access than other religious groups to educational facilities, particularly in higher education. Consequently, only 3.4 per cent of the Muslim population has completed graduation where as the corresponding figure for non-OBC, non-S.C./S.T. Hindus is 15.3per cent. Literacy levels are also similarly low. Only 59.1per cent of the community has literacy while the national average is 64.8 per cent. The literacy level for non-S.C./S.T. Hindus is 65.1 per cent.

The report shows that only 80 per cent of urban Muslim boys are enrolled in schools, compared to 90 per cent in S.C./S.T. communities and 95 per cent among others. Just 68 per cent of Muslim girls go to school, compared to 72 per cent of Dalit girls and 80 per cent of girls from other groups. The report also explodes the myth that Muslims prefer to send their children to madrassas. The data collected from different parts of the country affirms that only 3 to 4 per cent of Muslim children go to madrassas. It emphasises that Muslim parents, as a rule, like to send their children to regular schools but are unable to do so on account of lack of access to general educational institutions.

The community, with such large deficits in education and employment, naturally figures high in terms of incidence of poverty. The report's analysis is that incidence of poverty among Muslims has a Head Count Ratio (HCR) of 31 per cent, which is second only to the S.C./S.T. HCR of 35 per cent. Significantly, in urban areas Muslims have a higher HCR of 38.4 per cent as compared to 36.4 per cent for S.C./S.T. The report points out that though comprehensive community-wise figures about land ownership are not available, it is more or less clear that the percentage of landowners among Muslims is much lower than in other socio-religious categories.

In the background to all this, the community's access to social and physical infrastructure is also abysmal. The committee used the figures of the 2001 Census and data from the NSSO (61st Round) to evaluate access to social and physical infrastructure. The evaluation shows that the proportion of Muslim households living in properly constructed houses is lower than that of the total population. The report also points out that electric lights are used less in the Muslim community when compared to the all-India average with "the share of villages with no electricity increasing substantially" as the size of the Muslim population rises. The story is no different in terms of piped potable water. Only 25 per cent of rural households have piped water and less than 10 per cent of Muslim households have access to this facility.

R. SHIVAJI RAO JUSTICE RAJINDER SACHAR, who headed the committee.

On the positive side, the Sachar Committee notes that in spite of widespread poverty and under-development, the community has an increasingly better sex ratio than other socio-religious categories. Child mortality rates are also low in the community. The national Infant Mortality Rate stood at 73 in 1998-99 while it was only 59 in the Muslim community. The figure was 77 among Hindus and 49 among Christians. Another positive point the committee has recorded is the better housing conditions; Muslims are on a par with other communities in this and toilet facilities are even better. Despite these pluses, however, the overall condition is one of `development deficit'.

The Committee also points out that the problem of `development deficit' is exacerbated by the widespread perception among Muslims that they are discriminated against and excluded. The colossal shortfall in terms of political representation has contributed in a big way to the growth and expansion of this perception. The report points out that of the 543 Lok Sabha members, only 33 are Muslim, and warns that the low participation of Muslims in nearly all political spaces could have an adverse impact on Indian society and polity in the long run. "Given the power of numbers in a democratic polity, based on universal franchise, minorities in India lack effective agency and political importance," the report said. Minorities, it added, "do not have the necessary influence or the opportunity to either change or even influence events which enable their meaningful and active participation in development process."

A specific study of the committee on electoral constituencies has brought out several anomalies that militate against the Muslim community. The study shows that several constituencies reserved for S.Cs have Muslim populations. The study also showed that many constituencies with more than 50 per cent S.C. population are in the unreserved category. Taking this into consideration, the committee has recommended the elimination of the anomalies in electoral delimitation schemes: "A more rational delimitation procedure that does not reserve constituencies with high minority population shares for S.C.s will improve the opportunity for minorities, especially Muslims, to contest and get elected to Parliament and State Assemblies."

On the strength of its comprehensive research and analysis the report also highlights the fact that some sections of Muslim society are more unequal than others. It draws attention to "the presence of descent-based social stratification" on the lines of the Hindu caste system among Indian Muslims and identified three social segments - Ashrafs, Ajlafs and Arzals. The traditional occupation of Arzals is similar to that of S.C.s; most of them work as butchers, washer men, barbers and scavengers. Ajlafs are engaged in occupations similar to that of the Hindu OBCs, and a sizable section of them are also landowners. Ashrafs have suffered no social deprivation as they are converts from the Hindu upper-castes or have "foreign blood".

The report said that Arzals are essentially converts from `untouchable' Hindu communities and that the"change in religion did not bring about any change in their social or economic status". The report also points out that Arzals have been clubbed with `Ajlafs, and that while the three groups require different types of affirmative action, the Arzals require multifarious measures, including reservation. The committee maintains that Arzals are "cumulatively oppressed". As such it would be "most appropriate" to absorb them among the S.Cs or at least in a separate category, Most Backward Classes, carved out of the OBCs. The (Scheduled Caste) Order of 1950 has kept Muslim and Christian converts from among Hindu Dalits out of its purview, denying them reservation.

A crucial recommendation of the Sachar Committee is the constitution of an "Equal Opportunity Commission" to look into the grievances of deprived groups. The report also says that an example of such a policy tool is the British Race Relations Act, 1976, and notes: "Such a measure, while providing a redressal mechanism for different types of discrimination, will give a further reassurance to minorities that any unfair action against them will invite the vigilance of the law." The committee also points out that "mere material change will not bring about the true empowerment of the minorities; they need to acquire and be given the required collective agency." It suggests that a carefully conceived nomination procedure could be worked out to increase the participation of minorities at grassroots and in public bodies.

Reaction to the report has been on on predictable lines. All parties barring the BJP and the Shiv Sena have welcomed it as a step in the right direction. The Congress and the Left parties pointed out that the committee's study had proved the hollowness of the Sangh Parivar's "Muslim appeasement" contention. The BJP asserted that the recommendations would not improve the lot of Muslims as they reflected a pseudo-vision, full of biases and prejudices. Talking to Frontline, Professor T.K. Oommen, well-known sociologist and a member of the Sachar Committee, maintained that the real questions raised by the report need to be addressed and concrete action taken at the earliest. As the report pointed out, "non-implementation of recommendations of several earlier commissions and committees has made the Muslim community wary of any new initiative," he said.

Though the Sachar Committee did not specifically mention it, the summation of the Dr. Gopal Singh Committee must have been considered in this comment. In June 1983, the Dr. Gopal Singh Committee stated that two things were absolutely necessary to root out the sense of discrimination among Muslims: "Wherever the government has to make appointments through nominations, as in the case of governing bodies of banks and other public undertakings, utmost care should be taken to have a fair number of the minorities representatives, especially at the decision-making levels. Similarly, every recruiting agency or services commission must have an adequate number of their representatives, so that the sense of discrimination now prevailing may end." Twenty-three years after the submission of that report there is no record to suggest that these recommendations have been implemented.

What fate awaits the comprehensive report and recommendations of the Sachar Committee? The answer lies squarely with our political class, especially those who commissioned the Sachar panel - Prime Minister Manmohan Singh and his United Progressive Alliance government.

I rise to present the Budget for 2008-09. This House and the United Progressive Alliance Government have bestowed upon me the honour of presenting all five Budgets on behalf of a Government - a rare honour that I have the privilege to share with only one of my distinguished predecessors, Dr. Manmohan Singh.

I. THE ECONOMY: AN OVERVIEW

2. Honourable Members! The India growth story, so far, has been an absorbing and inspiring tale. Beginning January 1, 2005, the economy has recorded a growth rate of over 8 per cent in 12 successive quarters up to December 31, 2007. In the first three years of the UPA Government, the Gross Domestic Product (GDP) increased by 7.5 per cent, 9.4 per cent and 9.6 per cent, resulting in an unprecedented average growth rate of 8.8 per cent. In the current year too, according to the Advance Estimates by the Central Statistical Organisation (CSO), the growth rate will be 8.7 per cent - although I am confident that we will maintain the average of 8.8 per cent. The drivers of growth continue to be "services" and "manufacturing", which are estimated to grow at 10.7 per cent and 9.4 per cent, respectively.

3. Nevertheless, 2007-08 has been the most challenging of the last four years. At the beginning of the year, the outlook for the global economy was benign. Our economy, thanks to our own policies as well as globalisation, was poised to record another year of high growth: in fact, the first half of 2007-08 returned a growth of 9.1 per cent. However, since August 2007, the financial markets in the developed countries have witnessed considerable turbulence that has not yet abated. The consequences for developing countries are also not yet clear.

4. Moreover, agriculture has struck a disappointing note. Despite a fine start in the first half of 2007-08, the growth rate for the whole year in agriculture is estimated at only 2.6 per cent.

5. There are other downside risks too. World prices of crude oil, commodities and food grains have risen sharply in the period April 2007 to January 2008. The position of crude oil is well known to this House. Among commodities, the prices of iron ore, copper, lead, tin, urea etc are elevated. The prices of wheat and rice have increased in the world market by 88 per cent and 15 per cent, respectively. All these trends are inflationary, and there is pressure on domestic prices, especially on the prices of food articles. Consequently, the management of the supply side of food articles will be the most crucial task in the ensuing year.

6. We have also witnessed capital inflows that are far in excess of the current account deficit. This poses a challenge to monetary management. The solution lies in increasing the absorptive capacity of the economy in the medium term. In the short term, it is our responsibility to manage the flows more actively. Government will, in consultation with the RBI, continue to monitor the situation closely and take such temporary measures as may be necessary to moderate the capital flows consistent with the objective of monetary and financial stability.

7. Keeping inflation under check is one of the cornerstones of our policy. Recently, the Prime Minister declared, "I think no Government in our country can be oblivious to the objective of ensuring reasonable price stability without hurting the growth process." There can be no clearer enunciation of policy. However, since the downside risks have increased worldwide, we must be vigilant and prepared to make swift adjustments in our policies to achieve the goal of growth with price stability.

8. Let me first deal with agriculture, briefly for the present, and at some length later. The Ministry of Agriculture has estimated that the total output of food grains in 2007-08 will be 219.32 million tonnes and that will be an all time record. In particular, production of rice is estimated at 94.08 million tonnes; maize at 16.78 million tonnes; soya bean at 9.45 million tonnes; and cotton at 23.38 million bales (of 170 kg each) - and each of these will be an all time record. Government is conscious that while a lot has been done, a lot more needs to be done. Since the last Budget, Government has formulated and announced the National Policy for Farmers. Besides, Government has launched the Rashtriya Krishi Vikas Yojana with an outlay of Rs.25,000 crore and the National Food Security Mission with an outlay of Rs.4,882 crore. Both schemes will be implemented during the Eleventh Five Year Plan period. We are determined to become self-sufficient in food grains. Presently, I shall place before this House a number of new initiatives in the agriculture sector.

The Growth Story: Faster and more inclusive

9. To return to the India growth story, I am of the firm belief that we owe our sustained progress to the policy of economic reforms first ushered in by a Congress Government and now carried forward by the UPA Government.

10. If 1984 and 1991 were turning points in the history of India's economy, 2004 was another turning point. Confident that high growth was sustainable, the UPA Government had declared in the National Common Minimum Programme its intention to make growth more inclusive. Sir, I ask this House, respectfully, to judge our record on inclusive growth from the following sample of facts:

• agricultural credit doubled in the first two years of this Government and is poised to reach a level of Rs.240,000 crore by March 2008.

• the National Rural Employment Guarantee Scheme has proved to be a historic measure of empowerment of Scheduled Castes and Scheduled Tribes and, especially, of women.

• the Mid Day Meal Scheme is the largest school lunch programme in the world covering 11.4 crore children.

• the National Rural Health Mission has taken improved health care to rural India by strengthening the primary health centres of which 8,756 have been made 24 x 7.

11. Bharat Nirman has made impressive progress in 2007-08. This ambitious programme is now over 1,000 days old. At the current pace, on each day of the year 290 habitations are provided with drinking water and 17 habitations are connected through an all weather road. On each day of the year 52 villages are provided with telephones and 42 villages are electrified. On each day of the year 4,113 rural houses are completed.

12. Mr. Speaker, just as I sat down to write this speech, I received a slim volume titled "Indira Gandhi - Selected Sayings". Within minutes, I found this gem and I quote, "The more one does, the more one attempts, the more one is capable of doing". What I have narrated so far is indeed proof of more inclusive growth, but if you ask me "can we do better?", my answer would be "we can and we should." Budget 2008-09 is about raising our sights and doing more and doing better.

II. THE ELEVENTH FIVE YEAR PLAN:

THE CRUCIAL SECOND YEAR

13. The Eleventh Plan has started on a note of robust growth. Never before did we start a Plan with a first year growth rate of 8.7 per cent. Government regards the second year of the Plan as extremely critical to the success of the Plan. 2008-09 should be a year of consolidation; of securing the ongoing programmes on firm financial foundations; of close monitoring of implementation and enforcing accountability; and of measuring the outcomes in terms of the targets achieved as well as their quality. The Plan documents assumed that the Gross Budgetary Support (GBS) in the second year would be Rs.228,725 crore. In our view, that will not be enough. Hence, I propose to increase the GBS to Rs.243,386 crore, which will represent an increase of Rs.38,286 crore over the allocation in 2007-08.

14. Out of the GBS, the allocation for the Central Plan will be Rs.179,954 crore, marking an increase of 16 per cent over 2007-08.

15. Let me assure the House that all ongoing programmes will receive ample funds.

16. For Bharat Nirman, I propose to provide Rs.31,280 crore [including the North Eastern Region (NER) component] as against Rs.24,603 crore in 2007-08.

Education: Sarva Shiksha Abhiyan

17. Education and health are the twin pillars on which rests the edifice of social sector reforms. The total allocation for the education sector (including NER) will be increased by 20 per cent from Rs.28,674 crore in 2007-08 to Rs.34,400 crore in 2008-09.

18. Of this, Sarva Shiksha Abhiyan (SSA) will be provided Rs.13,100 crore; the Mid-day Meal Scheme will be provided Rs.8,000 crore; and secondary education will be provided Rs.4,554 crore.

19. The focus of SSA will shift from access and infrastructure at the primary level to enhancing retention; improving quality of learning; and ensuring access to upper primary classes.

20. A Model School programme, with the aim of establishing 6,000 high quality model schools, will be started in 2008-09. I propose to provide Rs.650 crore for the new scheme.

Jawahar Navodaya Vidyalaya

21. Jawahar Navodaya Vidyalayas are quality schools. In order to make such schools more accessible to SC and ST students, Government plans to establish Navodaya Vidyalayas in 20 districts that have a large concentration of Scheduled Castes and Scheduled Tribes. I propose to set apart Rs.130 crore in 2008-09 for this purpose.

Kasturba Gandhi Balika Vidyalaya

22. Kasturba Gandhi Balika Vidyalayas were set up to address the issue of equity in the education of girls belonging to SC, ST, OBC and minority communities. So far, 1,754 vidyalayas have been started, and I propose to allocate funds (as part of SSA) to set up an additional 410 vidyalayas in educationally backward blocks. I also propose to provide a sum of Rs.80 crore to set up new or upgrade existing hostels attached to the Balika Vidyalayas.

National Means-cum-Merit Scholarship

23. Last year, I had announced the National Means-cum-Merit Scholarship Scheme to enable students to continue their education beyond class VIII and up to class XII. I had provided Rs.750 crore with the promise to add a like amount every year for three more years. The Scheme will be implemented by award of 100,000 scholarships beginning 2008-09. I intend to keep my promise and earmark another sum of Rs.750 crore so that a corpus of Rs.3,000 crore will be built up in four years.

Nehru Yuva Kendra

24. 123 districts do not have a Nehru Yuva Kendra. I propose to allocate Rs.10 crore in 2008-09 to set up a Kendra in each of these districts and to cover the recurring expenditure in the first year.

Mid-day Meal Scheme

25. The Mid-day Meal Scheme has been extended to upper primary classes in 3,479 educationally backward blocks. The scheme will now be extended to upper primary classes in Government and Government-aided schools in all blocks in the country. This will benefit an additional 2.5 crore children, taking the total number of children covered under the Scheme to 13.9 crore.

Institutes of Higher Education

26. Knowledge is power. It is knowledge that will drive success in the 21st century. India has the opportunity to become a knowledge society. Following the Prime Minister's announcement, an IIM at Shillong; three IISERs at Mohali, Pune and Kolkata; and an IIIT at Kanchipuram have started functioning. Government will establish one Central University in each of the hitherto uncovered States. We propose to make a beginning in 2008-09 by establishing 16 Central Universities. Besides, we propose to set up three IITs in Andhra Pradesh, Bihar and Rajasthan; two IISERs at Bhopal and Tiruvananthapuram; and two Schools of Planning and Architecture at Bhopal and Vijayawada. More institutes of higher education, as promised by the Prime Minister, will be established during the Eleventh Plan period.

27. I also propose to make a grant of Rs.5 crore to the Deccan College Post-Graduate and Research Institute, Pune which is one of the oldest institutions of modern learning in India.

Science and Technology

28. We must encourage our children to take to careers in science and research and development. Ministry of Science and Technology will introduce a scheme called Innovation in Science Pursuit for Inspired Research (INSPIRE) that will include scholarships for young learners (10-17 years), scholarships for continuing science education (17-22 years) and opportunities for research careers (22-32 years). I propose to provide Rs.85 crore in 2008-09 for this inspired contribution to building a knowledge society.

29. The recommendations of the National Knowledge Commission, submitted from time to time, are under active consideration. Some of them have been incorporated in the Eleventh Plan. Government has accepted an important recommendation to inter-connect all knowledge institutions through an electronic digital broadband network. This will encourage sharing of resources and collaborative research. I propose to provide Rs. 100 crore to the Ministry of Information and Technology for establishing the National Knowledge Network.

Health

30. Turning to the health sector, I propose to allocate Rs.16,534 crore for the sector (including NER). This will mark an increase of 15 per cent over the allocation in 2007-08.

National Rural Health Mission

31. The National Rural Health Mission (NRHM) is the key instrument of intervention by the Central Government. The goal is to establish a fully functional, community owned, decentralised health delivery system. 462,000 Associated Social Health Activists (ASHAs) and link workers have been trained and are in place. 177,924 Village Health and Sanitation Committees are functional. 323 district hospitals have been taken up for upgradation. Ambitious goals have been set for 2008-09, and I propose to increase the allocation for NRHM to Rs.12,050 crore .

HIV/AIDS

32. The National Aids Control Programme will be provided Rs.993 crore. Studies have shown that the prevalence rate of HIV/AIDS has come down from 0.9 per cent to 0.36 per cent, which is a matter of some satisfaction.

Polio

33. The drive to eradicate polio continues with a revised strategy and a focus on the high risk districts in Uttar Pradesh and Bihar. I propose to provide Rs.1,042 crore in 2008-09 for this purpose.

Rashtriya Swasthya Bima Yojana

34. Two major interventions are planned to be started in 2008-09. The first is the Rashtriya Swasthya Bima Yojana that will provide a health cover of Rs.30,000 for every worker in the unorganised sector falling under the BPL category and his/her family. I am happy to report that most of the States have agreed to join the Yojana and it will be launched in Delhi and in the States of Haryana and Rajasthan on April 1, 2008. I propose to provide Rs.205 crore as the Centre's share of the premia in 2008-09.

National Programme for the Elderly

35. The other major intervention will be for the elderly. A National Programme for the Elderly with a Plan outlay of Rs.400 crore will be started in 2008-09. Among other measures, we will establish, during the Eleventh Plan period, two National Institutes of Ageing, eight regional centres, and a department for geriatric medical care in one medical college/tertiary level hospital in each State.

Integrated Child Development Services

36. The universalization of the Integrated Child Development Services (ICDS) Scheme is underway. At the end of December 2007, 5,959 ICDS projects and 932,000 Anganwadi and mini-Anganwadi centres were functional. The beneficiary count had increased to 629 lakh children and 132 lakh pregnant and lactating mothers. I propose to enhance the allocation for ICDS from Rs.5,293 crore in 2007-08 to Rs.6,300 crore in 2008-09.

37. I am also happy to announce that the remuneration of Anganwadi workers will be increased from Rs.1,000 per month to Rs.1,500 per month. Likewise, the remuneration of Anganwadi Helpers will be increased from Rs.500 per month to Rs.750 per month. Over 18 lakh Anganwadi workers and helpers will benefit from the increase.

Flagship Programmes

38. As Honourable Members are aware, there are eight flagship programmes of the UPA Government. I have dealt with two in the education sector (SSA & MMS) and two in the health sector (NRHM & ICDS). Let me now refer to the allocations that I propose to make for the other four flagship programmes:

• The National Rural Employment Guarantee Scheme (NREGS) will be rolled out to all 596 rural districts in India. Initially, we will provide Rs.16,000 crore. Let there be no apprehension in anyone's mind: as demand rises, more money will be provided to meet the legal guarantee of employment.

• The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) is the main vehicle for improving urban infrastructure. It has also succeeded in driving reforms in urban governance and urban-related laws. I propose to increase the allocation from Rs.5,482 crore in 2007-08 to Rs.6,866 crore in 2008-09.

• The goal of the Rajiv Gandhi Drinking Water Mission is to supply safe drinking water to uncovered habitations and slipped back habitations as well as to address issues of quality. I propose to enhance the allocation to Rs.7,300 crore in 2008-09 as against Rs.6,500 crore in 2007-08.

The Mission does not yet have a separate component for school children in water-deficient habitations. Our children should have good, clean drinking water. Hence, I propose to allocate funds to the Mission under a separate sub-head in order to install a standalone system to provide potable water to each school in water-deficient habitations. The cost of each system, depending on the technology and design, is estimated to be between Rs.15,000 to Rs.30,000. While a detailed plan for four years will be drawn up, I propose to make an initial allocation of Rs.200 crore in 2008-09.

• The Total Sanitation Campaign is all about changing habits and mindsets, and it is a continuous process. I propose to provide Rs.1,200 crore in 2008-09.

Desalination Plant

39. Honourable Members will recall that I had in July 2004 announced support for a desalination plant to be installed near Chennai. A proposal has now been received from the Government of Tamil Nadu to establish a plant under public private partnership. While the proposal will be examined for approval, I propose to signal the Government's support to the project by setting apart Rs.300 crore in 2008-09.

North Eastern Region

40. The North Eastern Region (NER) will continue to receive special attention and enhanced allocations. I propose to provide Rs.1,455 crore to the Ministry of Development of North Eastern Region (DONER). Including that amount, the total Budget allocation for NER, spread over different ministries/departments, will increase from Rs.14,365 crore in 2007-08 to Rs.16,447 crore in 2008-09.

41. The North Eastern Region and, especially, Arunachal Pradesh and the border areas face special problems that cannot be tackled in the usual course or through normal schemes. Hence, Government proposes to identify the urgent needs of these areas and address them through a special mechanism. In order to jumpstart the process, I propose to set apart a sum of Rs.500 crore in a fund dedicated for the purpose.

43. Development and Finance Corporations have been set up for certain disadvantaged groups. I propose to contribute additional equity to these corporations in the following manner:

Rs. Crore

1

National Minorities Development and Finance Corporation

75.00

2

Three National Finance and Development Corporations for Weaker Sections comprising

(i) Safai Karamcharis

(ii) Scheduled Castes

(iii) Backward Classes

106.50

3

National/State Scheduled Tribes Finance and Development Corporations

50.00

4

National Handicapped Development Corporation

9.00

Scholarships

44. In previous Budgets, we had announced a slew of pre- and post-matric scholarship programmes for SC, ST, OBC and minorities. All of them will be continued in 2008-09 with adequate funds as summarised below:

Scheduled Castes Rs.804 crore

Scheduled Tribes Rs.195 crore

Other Backward Classes Rs.164 crore

Minorities (post-matric) Rs.100 crore

45. I propose to allocate a sum of Rs.75 crore in 2008-09 to the Rajiv Gandhi National Fellowship Programme. As Honourable Members are aware, this programme supports SC and ST students pursuing M.Phil and PhD courses.

Scheduled Castes and Scheduled Tribes

46. Following the practice initiated in 2005-06, I have included in the Budget documents a statement on the schemes for the welfare of SCs and STs. I have provided Rs.3,966 crore for schemes benefiting SCs and STs exclusively and Rs.18,983 crore for schemes where at least 20 per cent of the benefits are earmarked for SCs and STs.

Minorities

47. The allocation to the Ministry of Minority Affairs will be increased from Rs.500 crore in 2007-08 to Rs.1,000 crore in 2008-09. Government has taken up the report of the Justice Rajindar Sachar Committee for speedy implementation. Apart from the schemes commenced in 2007-08, it is proposed to implement the following schemes/measures in 2008-09:

• a multi-sectoral development plan for each of the 90 minority concentration districts will be drawn up at a cost of Rs.3,780 crore. The allocation in 2008-09 will be Rs.540 crore;

• a pre-matric scholarship scheme with an allocation of Rs.80 crore next year;

• a scheme for modernising Madrassa education for which a provision of Rs.45.45 crore has been made in 2008-09;

• 256 branches of public sector banks have been opened this year until December 2007 in districts with substantial minority population. 288 more will be opened by March 2008 and many more in2008-09; and

• continuing the exercise started this year, more candidates belonging to the minority communities will be recruited to the Central Para-Military Forces.

48. I also propose to provide Rs.60 crore to enhance the corpus fund of the Maulana Azad Education Foundation.

Women and Children

49. I confess that policy makers often tend to forget that one-half of the population is constituted by women and they are entitled to an equal share - and an equal say - in all programmes and schemes. Gender Budgeting has gained wider acceptance and credibility. Four more ministries/departments have set up gender budgeting cells taking the total number to 54. Honourable Members will find in the Budget documents a statement embracing 33 demands for grants contributed by 27 ministries/departments and 5 Union Territories. According to the statement, Rs.11,460 crore has been provided for 100 per cent women-specific schemes and Rs.16,202 crore for schemes where at least 30 per cent is for women-specific programmes.

50. We will score another 'first' this year. A statement on child related schemes is included in the budget documents and Honourable Members will be happy to note that the total expenditure on these schemes is of the order of Rs.33,434 crore.

51. I propose to allocate Rs.7,200 crore in 2008-09 to the Ministry of Women and Child Development. This represents an increase of 24 per cent over the allocation in 2007-08.

Self Help Groups

52. The Life Insurance Corporation of India (LIC) runs the Janashree Bima Yojana and offers life and permanent disability cover to people in 44 categories. One of the categories is Self Help Groups, but only 35,000 SHGs have been covered so far. Considering the fact that there are over 30 lakh SHGs credit-linked to banks, I propose to single out this category for special attention. I propose to ask LIC to rapidly scale up the scheme and cover all women SHGs that are credit-linked to banks. Since one-half of the premium is subsidized through the Social Security Fund, I propose to contribute Rs.500 crore to the corpus of the fund with the assurance that annual contributions will be made as the scheme is scaled up. This scheme, together with the Rashtriya Swasthya Bima Yojana, will mark the beginning of a new deal for women by providing them life and health cover.

Supplement to GBS

53. Honourable Members will note that the allocations to various sectors and schemes are generous. I hasten to add that more can be done and more will be done subject, however, to one condition: the condition of performance. In the last Budget, I had announced a Plan 'B' and I was able to provide additional Plan funds of Rs.8,365 crore in cash through two supplementaries - and a third one will follow shortly. The nub of the problem lies in implementation - and implementation mostly is in the hands of State Governments. This year too, I intend to mobilise additional resources to the tune of Rs.10,000 crore to be used for Plan capital expenditure. This money - under Plan 'B' - will be available to ministries/departments of the Central Government and to State Governments that achieve the physical and quality targets set under different Plan schemes.

III. AGRICULTURE

54. I shall now return to the subject of agriculture.

55. I have already referred to the Rashtriya Krishi Vikas Yojana and the National Food Security Mission.

Agricultural Credit

56. Notwithstanding some shortcomings, the growth of agricultural credit has been impressive and for this I have to thank our scheduled commercial banks and Regional Rural Banks. Between them, they account for about 75-79 per cent of agricultural credit disbursed during any year. We will exceed the target set for 2007-08. For 2008-09, I propose to set a target of Rs.280,000 crore.

57. Short-term crop loans will continue to be disbursed at 7 per cent per annum and I am making an initial provision of Rs.1,600 crore for interest subvention in 2008-09.

Investment in Agriculture

58. What ails agriculture, among other things, is the fall in investment. However, there seems to be a turnaround. Gross Capital Formation (GCF) in agriculture as a proportion of GDP in the agriculture sector has improved from a low of 10.2 per cent in 2003-04 to 12.5 per cent in 2006-07. This, however, needs to be raised to 16 per cent during the Eleventh Plan to achieve the target growth rate of 4 per cent.

Water Resources

59. Government is investing heavily in the Accelerated Irrigation Benefit Programme (AIBP) and the Rainfed Area Development Programme and in the management and augmentation of water resources. Under AIBP, 24 major and medium irrigation projects and 753 minor irrigation schemes will be completed in this financial year, creating additional irrigation potential of 500,000 hectare. The outlay for 2007-08 was Rs.11,000 crore with a grant component of Rs.3,580 crore. These are being increased in 2008-09, and the estimated outlay is Rs.20,000 crore with a grant component of Rs.5,550 crore.

60. The Rainfed Area Development Programme has been finalised and will be implemented in 2008-09 with an allocation of Rs.348 crore. Priority will be given to those areas that have not been the beneficiaries of watershed development schemes.

61. The centrally sponsored scheme on micro irrigation launched in January 2006 has brought an area of 548,000 hectare under drip and sprinkler irrigation within two years. I propose to allocate Rs.500 crore for the scheme in 2008-09 with a target of covering another 400,000 hectare.

62. Agreements have been signed with the World Bank by the Governments of Tamil Nadu, Andhra Pradesh and Karnataka under the project to repair, renovate and restore water bodies. The three agreements are for a total sum of US$738 million that will benefit a command area of 900,000 hectare. I am confident that similar agreements will be signed soon between the World Bank and the Governments of Orissa, West Bengal and some other States.

Irrigation and Water Resources Finance Corporation

63. While these ongoing programmes will raise the level of investment in agriculture, I think that we need an ambitious scheme of a much larger proportion. Government is of the view that massive investments are required to be made in irrigation projects. Recently, Government has approved 14 projects that satisfy certain criteria as national projects and three of them alone would require Rs.7,000 crore during the Eleventh Plan period. Having regard to the magnitude of the challenge, I propose to establish the Irrigation and Water Resources Finance Corporation (IWRFC) with an initial capital of Rs.100 crore contributed by the Central Government. State Governments and other financial institutions will be invited to contribute to the equity. It is our intention to mobilise the very large resources that will be required to fund major and medium irrigation projects. I hope to be able to incorporate IWRFC as a company before March 31, 2008.

National Horticulture Mission

64. The National Horticulture Mission (NHM) now covers 340 districts in 18 States and two Union Territories. An area of 276,000 hectare has been brought under horticulture crops and an area of 56,000 hectare of old plantations has been rejuvenated. Special thrust is being given to the revival of crops such as coconut, cashew and pepper. NHM will be provided Rs.1,100 crore in 2008-09.

65. 500 soil testing laboratories will be set up in the public and private sectors during the Eleventh Plan period with Government assistance of Rs.30 lakh per laboratory. In addition, I propose to make a one-time allocation of Rs.75 crore to the Ministry of Agriculture in order to provide one fully-fitted mobile soil testing laboratory each to 250 districts of the country before March 2009.

Plantation Crops

66. The Special Purpose Tea Fund set up last year for re-plantation and rejuvenation will be provided Rs.40 crore in 2008-09. I propose to provide funds for similar support to other plantation crops such as cardamom (Rs.10.68 crore), rubber (Rs.19.41 crore) and coffee (Rs.18 crore). A crop insurance scheme for tea, rubber, tobacco, chilli, ginger, turmeric, pepper and cardamom will be introduced next year.

67. In order to promote research on matters concerning the plantation sector, I propose to make a one-time grant of Rs.5 crore to the Centre for Development Studies, Tiruvananthapuram. The Tocklai Experimental Station at Jorhat of the Tea Research Association will celebrate its centenary in 2010. It is in the process of upgrading its facilities and expanding its activities to cover other North Eastern States, North Bengal and Darjeeling. I propose to make a special centenary grant of Rs.20 crore to the Tea Research Association.

68. The National Plant Protection Training Institute at Hyderabad will be converted and upgraded into an autonomous National Institute of Plant Health Management with budgetary support of Rs.29.4 crore.

Crop Insurance

69. Pending a decision on an alternative crop insurance scheme that is acceptable to the farmers as well as viable to the insurer, the National Agriculture Insurance Scheme (NAIS) will be continued in its present form for Kharif and Rabi 2008-09. I propose to provide Rs.644 crore for the scheme.

70. In addition, the Weather Based Crop Insurance Scheme that is being implemented as a pilot scheme in selected areas of five States will be continued. I intend to provide Rs.50 crore for this purpose in 2008-09.

71. Government will continue to provide fertilisers to farmers at subsidized prices. Government is examining proposals to move to a nutrient based subsidy regime and alternative methods of delivering the subsidy.

Cooperative Credit Structure

72. The Prof. Vaidyanathan Committee's report on reviving the short-term cooperative credit structure is under implementation in 17 States. So far, a sum of Rs.1,185 crore has been released by the Central Government to four States. I am happy to report that the Central Government and the State Governments have reached an agreement on the content of the package to implement the Prof. Vaidyanathan Committee's report on reviving the long-term cooperative credit structure. The cost of the package is estimated at Rs.3,074 crore, of which the Central Government's share will be Rs.2,642 crore or 86 per cent of the total burden.

Debt Waiver and Debt Relief

73. Sir, while I am confident that the schemes and measures that I have listed above will give a boost to the agriculture sector, the question that still looms large is what we should do about the indebtedness of farmers. Honourable members will recall that Government had appointed a Committee under Dr. R. Radhakrishna to examine all aspects of agricultural indebtedness. The Committee has since submitted its report and it is in the public domain. The Committee had made a number of recommendations but stopped short of recommending waiver of agricultural loans. However, Government is conscious of the dimensions of the problem and is sensitive to the difficulties of the farming community, especially the small and marginal farmers. Having carefully weighed the pros and cons of debt waiver and having taken into account the resource position, I place before this House a scheme of debt waiver and debt relief for farmers:

(i) All agricultural loans disbursed by scheduled commercial banks, regional rural banks and cooperative credit institutions up to March 31, 2007 and overdue as on December 31, 2007 will be covered under the scheme.

(ii) For marginal farmers (i.e., holding upto 1 hectare) and small farmers (1-2 hectare), there will be a complete waiver of all loans that were overdue on December 31, 2007 and which remained unpaid until February 29, 2008. In respect of other farmers, there will be a one time settlement (OTS) scheme for all loans that were overdue on December 31, 2007 and which remained unpaid until February 29, 2008. Under the OTS, a rebate of 25 per cent will be given against payment of the balance of 75 per cent.

(iii) Agricultural loans were restructured and rescheduled by banks in 2004 and 2006 through special packages. These rescheduled loans, and other loans rescheduled in the normal course as per RBI guidelines, will also be eligible either for a waiver or an OTS on the same pattern.

(iv) The implementation of the debt waiver and debt relief scheme will be completed by June 30, 2008. Upon being granted debt waiver or signing an agreement for debt relief under the OTS, the farmer would be entitled to fresh agricultural loans from the banks in accordance with normal rules.

(v) Government estimates that about three crore small and marginal farmers and about one crore other farmers will benefit from the scheme. The total value of overdue loans being waived is estimated at Rs.50,000 crore and the OTS relief on the overdue loans is estimated at Rs.10,000 crore.

I appeal to Honourable Members - as well as to the people of India - to give their unqualified support to the scheme and help Government implement this momentous decision.

IV. INVESTMENT, INFRASTRUCTURE, INDUSTRY AND TRADE

74. Since 2005-06, there has been an unmistakable boom in investment. Two indicators tell the story. The saving rate and the investment rate in 2003-04 were 29.8 per cent and 28.2 per cent, respectively. According to estimates made by the Economic Advisory Council to the Prime Minister, they will be 35.6 per cent and 36.3 per cent, respectively, by the end of 2007-08. The trend is reflected on the foreign investment side too. During the period April-December 2007-08, foreign direct investment amounted to US$12.7 billion and foreign institutional investment to US$18 billion. Our policy is to encourage all sources of investment, domestic and foreign, private and public.

75. In 2008-09, Government will provide Rs.16,436 crore as equity support and Rs.3,003 crore as loans to Central Public Sector Enterprises (CPSEs). 44 CPSEs are listed today. It is the policy of the Government to list more CPSEs in order to unlock their true value and improve corporate governance.

Rural Infrastructure Development Fund

76. The Rural Infrastructure Development Fund (RIDF) is the main instrument to channelize bank funds for financing rural infrastructure, and it is quite popular among State Governments. Therefore, I propose to raise the corpus of RIDF-XIV in 2008-09 to Rs.14,000 crore. I also propose to operate a separate window under RIDF-XIV for rural roads with a corpus of Rs.4,000 crore.

Manufacturing Sector

77. There has been some moderation in the index of production of the six core infrastructure industries as well as in the overall index of industrial production for the period April-December 2007-08. The decline has been somewhat sharp in the case of consumer goods, especially consumer durables. The silver lining is that the growth in capital goods is still very high at 20.2 per cent, indicating that industry continues to make huge capital investments and has a positive outlook about the future. Manufacturing industries that have grown more slowly than the average include food products, cotton textiles, textile products including apparel, paper and transport equipment. Among the reasons for the moderation are a rise in interest rates and the appreciation of the Rupee. There are limits to monetary policy accommodation, especially when the need is to maintain price stability. However, some steps can be taken on the fiscal side and I shall, presently, place before the House some proposals in order to stimulate industrial growth. Our goal is to take the manufacturing growth rate to a double digit. This will also call for more reforms in the coal and electricity sectors as well as confronting oligopolistic tendencies in the cement and steel sectors.

Power

78. The Eleventh Plan target for additional power generation capacity is 78,577 MW which is more than the total capacity added in the previous three Plans. By end March 2008, we will achieve Commercial Operation Date (COD) on about 10,000 MW, marking the best first year in any Plan period. Government will redouble its efforts to ensure that the ambitious target for the Eleventh Plan is achieved.

79. The fourth Ultra Mega Power Project (UMPP) at Tilaiya will be awarded shortly. It is possible to bring five more UMPPs in Chhattisgarh, Karnataka, Maharashtra, Orissa and Tamilnadu to the bidding stage provided the States extend the required support. I urge them to do so.

80. Government has approved the continuation of the Rajiv Gandhi Grameen Vidyutikaran Yojana during the Eleventh Plan period with a capital subsidy of Rs.28,000 crore. I propose to allocate Rs.5,500 crore in 2008-09 for the Yojana (including NER).

81. I propose to provide Rs.800 crore in 2008-09 for the Accelerated Power Development and Reforms Project. However, it is the poor state of transmission and distribution (T&D) that is a drag on the sector. Huge investments are required to be made in T&D, but linked to fundamental reforms. Hence, I propose to create a national fund for transmission and distribution reform. The details of the scheme will be worked out and announced very soon.

Roads

82. All phases of the National Highway Development Programme continue to make progress. The completion ratio in the Golden Quadrilateral is 96.48 per cent and in the North South, East West Corridor project is 23.36 per cent. Special attention is being paid to SARDP-NE, a programme devised for the North Eastern region. 180 kms of roads were completed in 2007-08 and the target for 2008-09 is 300 kms. I propose to enhance the allocation for the NHDP from Rs.10,867 crore in 2007-08 to Rs.12,966 crore next year.

Oil and Gas

83. The 7th round of bidding under the New Exploration Licensing Policy (NELP) was launched in December 2007 and bids have been invited for 57 exploration blocks. It is estimated that the round will attract investment of the order of US$3.5 billion to US$8 billion for exploration and discovery.

Coal

84. 53 coal blocks with reserves of 13,842 million tonnes have been allotted during April-January 2007-08 to Government and private sector companies. A new Coal Distribution Policy was notified in October 2007. A coal regulator will be appointed.

Information Technology

85. Government's forward looking policy is driving the growth of Information Technology and Information Technology Enabled Services. I propose to enhance the allocation to the Department of Information Technology from Rs.1,500 crore in 2007-08 to Rs.1,680 crore in 2008-09. A scheme for establishing 100,000 broadband internet-enabled Common Service Centres in rural areas and a scheme for establishing State Wide Area Networks (SWAN) with Central assistance are under implementation. A new scheme for State Data Centres has also been approved. I propose to provide Rs.75 crore for the common service centres, Rs.450 crore for SWAN and Rs.275 crore for the State Data Centres.

Textiles

86. The two principal schemes of the Ministry of Textiles - the Scheme for Integrated Textile Parks (SITP) and the Technology Upgradation Fund (TUF) - will be continued in the Eleventh Plan period. All 30 integrated textile parks have been approved and 20 units in four parks have commenced production. I propose to maintain the provision for SITP at Rs.450 crore in 2008-09. The provision for TUF will be increased from Rs.911 crore in the current year to Rs.1,090 crore in 2008-09.

87. The cluster approach to the development of the handloom sector has made rapid progress. 250 clusters are being developed. 443 yarn banks have been established. By March 2008, over 17 lakh families of weavers will be covered under the health insurance scheme. I propose to increase the allocation to Rs.340 crore in 2008-09.

88. In order to scale up both infrastructure and production, it is proposed to take up six centres for development as mega-clusters. Varanasi and Sibsagar will be taken up for handlooms, Bhiwandi and Erode for powerlooms, and Narsapur and Moradabad for handicrafts. Each mega-cluster will require about Rs.70 crore. I propose to start the process with an initial provision of Rs.100 crore in 2008-09.

Micro, Small and Medium Enterprises

89. Micro, small and medium enterprises will continue to receive support from the Government. I wish to remove certain wrong perceptions about the sector. In the four years ending 2006-07, for which figures are available, there has been a secular rise in the number of registered units, the number of unregistered units, production, employment and exports. In order to give a fillip to the sector, I propose to create a risk capital fund in the Small Industries and Development Bank of India (SIDBI). As on January 31, 2008, the Credit Guarantee Trust with SIDBI had extended guarantees to 89,129 units for an amount of Rs.2,479 crore. SIDBI will reduce the guarantee fee from 1.5 per cent to 1 per cent and the annual service fee from 0.75 per cent to 0.5 per cent for loans up to Rs.5 lakh.

Foreign Trade

90. Merchandise exports have come under some pressure due to the appreciation of the Rupee and may fall just short of the target of US$ 160 billion, although the growth rate was strong at 21.8 per cent during April-December 2007-08. Relief was given to exporters in three tranches amounting to over Rs.8,000 crore. I may note that the interest cost of sterilization through market stabilization bonds (MSS), estimated at Rs.8,351 crore for the whole year is, in a sense, subsidy to the export sector. Government is sensitive to the needs of the export sector and will continue to respond sympathetically as the situation demands.

V. FINANCIAL SECTOR

91. Government's policy of a careful and calibrated opening of the financial sector has proved successful. We shall continue to take measured steps.

92. The final report of the Committee on Financial Inclusion has been received. To begin with, I propose to accept two recommendations:

• to advise commercial banks, including RRBs, to add at least 250 rural household accounts every year at each of their rural and semi-urban branches; and

• to allow individuals such as retired bank officers, ex-servicemen etc to be appointed as business facilitator or business correspondent or credit counsellor.

93. Banks will be encouraged to embrace the concept of Total Financial Inclusion. Government will request all scheduled commercial banks to follow the example set by some public sector banks and meet the entire credit requirements of SHG members, namely, (a) income generation activities, (b) social needs like housing, education, marriage etc and (c) debt swapping.

NABARD, SIDBI and NHB

94. Financial inclusion can be taken forward by expanding the reach of NABARD, SIDBI and NHB. Hence, in order to increase the resource base of these three banks, I propose to tap into the resources of scheduled commercial banks to the extent that they fall short of their obligation to lend to the priority sector. Accordingly, it is proposed to create the following funds:

(i) a fund of Rs.5,000 crore in NABARD to enhance its refinance operations to short term cooperative credit institutions;

(ii) two funds of Rs.2,000 crore each in SIDBI - one for risk capital financing and the other for enhancing refinance capability to the MSME sector; and

(iii) a fund of Rs.1,200 crore in NHB to enhance its refinance operations in the rural housing sector.

Each of these funds will be governed by the general guidelines that are now applicable to RIDF with some modifications.

95. Last year, I enhanced the limit of the loan that could be extended under the Differential Rate of Interest (DRI) scheme to the weaker sections of the community engaged in gainful occupations. However, I did not enhance the eligibility criteria which still stand at levels fixed in 1986. This needs to be corrected. Hence, I propose to fix the borrower's eligibility criteria as annual family income of Rs.18,000 in rural areas and Rs.24,000 in urban areas.

Capital Markets

96. In my Budget Speech of 2006, I had informed the House that, on the basis of the R.H. Patil Committee Report, we shall take steps to create an exchange-traded market for corporate bonds. Both Bombay Stock Exchange and National Stock Exchange have created platforms for trading in corporate bonds.

97. I intend to move forward by taking some more measures to expand the market for corporate bonds. Hence, I propose to:

• take measures to develop the bond, currency and derivatives markets that will include launching exchange-traded currency and interest rate futures and developing a transparent credit derivatives market with appropriate safeguards;

• enhance the tradability of domestic convertible bonds by putting in place a mechanism that will enable investors to separate the embedded equity option from the convertible bond and trade it separately; and

• encourage the development of a market-based system for classifying financial instruments based on their complexity and implicit risks.

98. The fear of the Permanent Account Number (PAN) has virtually disappeared. PAN is now the sole identification number for all participants in the securities market. I propose to extend the requirement of PAN to all transactions in the financial market subject, however, to suitable threshold exemption limits.

99. Our stock exchanges provide national electronic trading platforms for securities transactions. Yet, we do not have a seamless national market for securities because of differences among States on the scope and applicability of rates of stamp duty. Hence, I propose to request the Empowered Committee of State Finance Ministers to work with the Central Government to create a truly pan Indian market for securities that will expand the market base and enhance the revenues of the State Governments.

VI. OTHER PROPOSALS

100. India is poised to reap a 'demographic dividend' because the size of its working age population will increase from about 77.5 crore in 2008 to a likely peak of 95 crore in 2026. The 'dividend' can prove illusory if the workforce does not acquire the skills to support a knowledge and technology driven economy.

Skill Development Mission

101. Today, skill development programmes are diffused and administered by a number of ministries/departments. I have no intention of interfering with these sector-specific programmes. However, there is a compelling need to launch a world-class skill development programme, in mission mode, that will address the challenge of imparting the skills required by a growing economy. Both the structure and the leadership of the mission must be such that the programme can be scaled up quickly to cover the whole country. Hence, I propose to establish a non-profit corporation and entrust the mission to that corporation. It is my intention to garner about Rs.15,000 crore as capital from Governments, the public and private sector, and bilateral and multilateral sources. I shall begin by putting Rs.1,000 crore as Government's equity in the proposed non-profit corporation.

Industrial Training Institutes

102. The upgradation of ITIs is proceeding apace. Under the World Bank assisted scheme, 238 ITIs are undergoing upgradation. Under the PPP scheme, 309 ITIs in 29 States have been identified with corresponding industry partners and agreements have been signed in 244 cases. In anticipation of upgrading 300 more ITIs in 2008-09, I have set apart Rs.750 crore.

Sainik Schools

103. I am concerned by the rate of attrition in the defence forces, especially at the officer level. Sainik Schools have played a unique role as recruiting and training ground of future leaders of the defence forces. I propose to make an allocation of Rs.44 crore at the rate of Rs.2 crore each to the 22 Sainik Schools for immediate improvement of infrastructure including classrooms, laboratories, libraries and facilities for physical education.

Public Distribution System

104. A sum of Rs.32,667 crore is being provided next year for food subsidy under the Public Distribution System (PDS) and other welfare programmes. Strengthening the PDS would mean adequate supplies, reasonable subsidies and efficient delivery of the subsidized food. An idea that has been growing is to deliver subsidies to the target group through smart cards. Finally, I have found two willing partners - the State of Haryana and the Union Territory of Chandigarh. They will introduce, on a pilot basis, a smart card based delivery system to deliver food grains under the PDS in Haryana and Chandigarh, respectively. I thank the Chief Minister of Haryana and the Administrator of Chandigarh and promise them full support and cooperation in making a success of the pilot scheme.

Unorganised Sector Workers

105. The Unorganised Sector Workers' Social Security Bill, 2007 is before Parliament. In anticipation of the Bill being made into law, Government has introduced three schemes that are designed to provide social security to workers in the unorganised sector in a phased manner. These are:

• the Aam Admi Bima Yojana that will provide insurance cover to poor households. I am happy to announce that, in the first year of the Yojana, LIC will cover one crore landless households by September 30, 2008. I have already placed Rs.1,500 crore with LIC. In order to cover another one crore poor households in the second year, I propose to place an additional sum of Rs.1,000 crore with LIC in 2008-09;

• the Rashtriya Swasthya Bima Yojana that will be implemented with effect from April 1, 2008; and

• the Indira Gandhi National Old Age Pension Scheme that was enlarged with effect from November 19, 2007 to include all persons over 65 years falling under the BPL category. Consequently, the coverage has expanded from 87 lakh to 157 lakh beneficiaries. I propose to allocate Rs.3,443 crore in 2008-09 as against Rs.2,392 crore in 2007-08.

Housing for the Poor

106. Housing for the poor is one of the six elements of Bharat Nirman and is implemented through the Indira Awas Yojana (IAY). Against a target of 60 lakh houses, 41.13 lakh houses have been constructed up to December 2007 and the cumulative number will be 51.77 lakh houses by end March 2008. Reflecting the higher cost of construction, I propose to enhance the subsidy per unit in respect of new houses sanctioned after April 1, 2008 from Rs.25,000 to Rs.35,000 in plain areas and from Rs.27,500 to Rs.38,500 in hill/difficult areas. The subsidy for upgradation of houses will be increased from Rs.12,500 per unit to Rs.15,000. A beneficiary will still need own funds to complete the house. Public sector banks will be advised to include IAY houses under the differential rate of interest (DRI) scheme and lend up to Rs.20,000 per unit at an interest rate of 4 per cent.

Defence

107. I propose to increase the allocation for Defence by 10 per cent from Rs.96,000 crore to Rs.105,600 crore. I have assured the Raksha Mantri that any further amount needed for the Defence Forces, especially for capital expenditure, will be provided.

Backward Regions Grant Fund

108. The Backward Regions Grant Fund was given Rs.5,800 crore in the current year. Having regard to the pace of expenditure, I propose to keep the allocation for the next year at the same level. I may add that nearly 45 per cent of the amount is likely to be allocated to the States of Bihar, Orissa and Uttar Pradesh.

Climate Change

109. In the Budget Speech last year I had announced the decision of the Government to appoint an expert committee to study the impact of climate change on India and identify the measures that we may have to take in the future. Work is in progress. Even while adhering to the principle of "common but differentiated responsibility" we can - and we must - do a number of things in our self-interest. We can promote clean technology products; we can review fuel emission and efficiency regulations; we can replace wood by solar as the fuel of common use; we can encourage the use of gas which is the most benign hydrocarbon; we can set up a trading platform for carbon emissions; we can build sustainable greenfield cities; and we can do more. In order to explore and implement these and other ideas, Government proposes to establish a permanent institutional mechanism that will play a development and coordination role. Details of the institutional mechanism will be announced shortly.

Sixth Central Pay Commission

110. I have been informed that the Sixth Central Pay Commission will submit its report by March 31, 2008. I am confident that the report will meet the legitimate expectations of Government employees.

Commonwealth Games

111. The Commonwealth Games are only 947 days away. As promised, we shall provide Rs.624 crore in 2008-09. I would urge the authorities concerned to adhere to the strict timelines and the quality standards.

Institutions of Excellence

112. For the fourth year in succession, I propose to make a special grant of Rs.100 crore each to three institutions of excellence. The awards for 2008-09 go to: (i) Mahatma Phule Krishi Vidyapeeth, Rahuri, Maharashtra; (ii) University of Mysore, Mysore; and (iii) Delhi University, Delhi.

India's Soft Power

113. India's music, literature, dance, art, cuisine and especially films are attracting huge interest around the world. This is the 'soft power' of India, and it must be projected in a sophisticated and subtle manner. I propose to provide Rs.75 crore to the Indian Council of Cultural Relations to design and implement a programme to achieve this objective.

Tiger Protection

114. The number 1,411 should ring the alarm bells. That is the number of tigers in India. The tiger is under grave threat. In order to redouble our effort to protect the tiger, I propose to make a one time grant of Rs.50 crore to the National Tiger Conservation Authority. The bulk of the grant will be used to raise, arm and deploy a special Tiger Protection Force.

Monitoring and Evaluation

115. Robust economic growth has thrown up many new challenges, among them the need to put in place effective monitoring, evaluation and accounting systems for the large sums of money that are disbursed by the Central Government to State Governments, district level agencies and other implementing agencies. I think we do not pay enough attention to outcomes as we do to outlays; or to physical targets as we do to financial targets; or to quality as we do to quantity. Government therefore proposes to put in place a Central Plan Schemes Monitoring System (CPSMS) that will be implemented as a Plan scheme of the Planning Commission. A comprehensive Decision Support System and Management Information System will also be established. The intended outcome is to generate and monitor scheme-wise and State-wise releases for about 1,000 Central Plan and centrally sponsored schemes in 2008-09.

116. Government also intends to strengthen evaluation. Some ministries have started concurrent evaluation. This needs to be supplemented by independent evaluations conducted by research institutions. The Planning Commission will authorise such evaluations of the major schemes and complete the task by the time of the mid-term review of the Eleventh Plan.

VII. BUDGET ESTIMATES

117. I shall now turn to the Budget Estimates for 2008-09.

118. The estimate of Plan Expenditure is placed at Rs.243,386 crore. As a proportion of total expenditure, it will be 32.4 per cent.

119. Non-Plan Expenditure is estimated at Rs.507,498 crore.

Revenue Deficit and Fiscal Deficit

120. It is widely acknowledged that the fiscal position of the country has improved tremendously. I am happy to report that the revenue deficit for the current year will be 1.4 per cent (against a BE of 1.5 per cent) and the fiscal deficit will be 3.1 per cent (against a BE of 3.3 per cent).

121. Further progress will be made in 2008-09. The revenue receipts of the Central Government for 2008-09 are projected at Rs.602,935 crore and the revenue expenditure at Rs.658,119 crore. Consequently, the revenue deficit is estimated at Rs.55,184 crore, which amounts to 1.0 per cent of GDP. The fiscal deficit is estimated at Rs.133,287 crore which is 2.5 per cent of GDP. Honourable Members will note that not only will I achieve the target for fiscal deficit under the FRBM Act, I have also left for myself some headroom. In the case of revenue deficit, I will meet the target of annual reduction of 0.5 per cent. However, because of the conscious shift in expenditure in favour of health, education and the social sector, we may need one more year to eliminate the revenue deficit. In my view, this is an entirely acceptable deferment.

Revisiting the Roadmap for Fiscal Adjustment

122. I acknowledge that significant liabilities of the Government on account of oil, food and fertilizer bonds are currently below the line. This accounting arrangement is consistent with past practice. Nevertheless, our fiscal and revenue deficits are understated to that extent. There is a need to bring these liabilities into our fiscal accounting. As a first step, I have shown these liabilities clearly in 'Budget at a Glance'. After the obligations on account of the Sixth Central Pay Commission become clear, I intend to request the Thirteenth Finance Commission to revisit the roadmap for fiscal adjustment and suggest a suitably revised roadmap.

PART - B

VIII. TAX PROPOSALS

123. Mr. Speaker, I shall now present my tax proposals.

124. Many people are surprised by the buoyancy in tax revenues, especially in direct taxes. I am not. I have always maintained that moderate and stable tax rates coupled with a tax administration that shows no fear or favour will bring high revenues to the exchequer.

125. The UPA Government inherited a tax to GDP ratio of 9.2 per cent in 2003-04. At the end of 2007-08, that ratio would have risen to 12.5 per cent.

126. High growth rates have helped. Changes in attitude have also helped. Above all, information systems and technology have helped most. And, if I may add in a lighter vein, having a lucky Finance Minister may have also helped! We are on course to achieve the Budget Estimates of indirect taxes and exceed the Budget Estimates of direct taxes. I take this opportunity to thank all tax payers and I promise them an efficient and tax payer-friendly administration.

Indirect Taxes

127. I shall begin with customs duties.

128. The peak rate for non-agricultural products was 20 per cent in January 2004 and now stands at 10 per cent. The collection rate is the closest approximation to the level of protection to domestic industry, and that rate for all imports stood at 10 per cent in 2006-07. Since April 2007, the Rupee has appreciated against the Dollar by 9.8 per cent. Consequently, the case for reducing the peak rate at this stage is very weak. Hence, I propose to make no change in the peak rate of customs duty.

129. However, I find that in some cases it is necessary to reduce the customs duty in order to provide a fillip to that industry or to promote value addition or to remove inversion or any other anomaly. I shall refer to a few such cases.

130. I propose to reduce the customs duty on Project Imports from 7.5 per cent to 5 per cent. However, I also propose to impose the 4 per cent special CVD on a few specified projects in the power sector.

131. In order to improve the supply of raw material, I propose to reduce the duty on steel melting scrap and aluminium scrap from 5 per cent to nil.

132. On certain specified life saving drugs and on the bulk drugs used for the manufacture of such drugs, I propose to reduce the customs duty from 10 per cent to 5 per cent as well as to totally exempt them from excise duty or countervailing duty.

133. In order to reduce the cost of manufacture of cattle and poultry feeds, I propose to reduce the duty on vitamin premixes and mineral mixtures from 30 per cent to 20 per cent and on phosphoric acid from 7.5 per cent to 5 per cent.

134. The duty on bactofuges will be reduced from 7.5 per cent to nil. This will increase the shelf life of milk and benefit the dairy industry.

135. I propose to fully exempt from duty specified parts of set top boxes and specified raw materials for use in the IT/electronic hardware industry.

136. To establish parity between devices used in the information/ communication sector and the entertainment sector, I propose to reduce the duty on convergence products from 10 per cent to 5 per cent.

137. To provide a fillip to the manufacture of sports goods, I propose to reduce the duty on specified machinery from 7.5 per cent to 5 per cent. I also propose to exempt from duty specified raw materials for sports goods.

138. The gem and jewellery industry has responded well to the duty reductions made last year. In order to encourage value addition and exports, I propose to exempt from duty rough cubic zirconia and to reduce the duty on polished cubic zirconia from 10 per cent to 5 per cent. Similarly, the duty on rough coral will be reduced from 10 per cent to 5 per cent.

139. To facilitate training of helicopter pilots, I propose to remove the duty on helicopter simulators.

140. In order to support domestic fertiliser production, I propose to reduce the customs duty on crude and unrefined sulphur from 5 per cent to 2 per cent.

141. Thanks to a complex regime of export benefits and duty exemptions, naphtha is exported from refineries and naphtha is imported by manufacturers of polymers, leading to price distortions and revenue losses. I propose to correct the situation by withdrawing the duty exemption on naphtha for use in the manufacture of polymers and subject it to the normal rate of 5 per cent. However, naphtha imported for the production of fertilisers will continue to be exempt from import duty.

142. Finally, in order to conserve chrome ore and make it available for value added manufacture in India, I propose to increase the export duty from Rs.2,000 per metric tonne to Rs.3,000 per metric tonne.

143. I shall now deal with excise duties.

144. The manufacturing sector is the backbone of any economy. It is consumption that drives production and it is production that drives investment. Having carefully studied current trends of production and consumption, I believe there is a need to give a stimulus to the manufacturing sector. Hence, I propose to reduce the general CENVAT rate on all goods from 16 per cent to 14 per cent.

145. I have looked at specific sectors where growth is flagging. These sectors are important because they are growth and employment drivers. Some of them also have large externalities. Therefore, I propose to:

• reduce the excise duty on all goods produced in the pharmaceutical sector from 16 per cent to 8 per cent;

• reduce the excise duty on buses and their chassis from 16 per cent to 12 per cent;

• reduce the excise duty on small cars from 16 per cent to 12 per cent and on hybrid cars from 24 per cent to the general revised rate of 14 per cent;

• reduce the excise duty on two wheelers and three wheelers from 16 per cent to 12 per cent; and

• reduce the excise duty on paper, paper board and articles made therefrom manufactured out of non-conventional raw materials by units not having an attached bamboo/wood pulp making plant from 12 per cent to 8 per cent with a further reduction on clearances up to 3,500 MT from 8 per cent to nil. Furthermore, excise duty on certain varieties of writing, printing and packing paper will be reduced from 12 per cent to 8 per cent.

146. There are a number of products which are goods of mass consumption. There is also the need to have tax parity on similar goods. Taking into account requests from a number of industries, I propose to reduce the excise duty from 16 per cent to nil on a few items including composting machines, wireless data cards, packaged coconut water, tea and coffee mixes, and puffed rice.

147. Further, I propose to reduce the excise duty from 16 per cent to 8 per cent on a few items including water purification devices, veneers and flush doors, sterile dressing pads, specified packaging material, and breakfast cereals.

148. I propose to totally exempt from excise duty the anti AIDS drug, Atazanavir, as well as bulk drugs for its manufacture.

150. I propose to bring parity in the excise duty rates on bulk cement and packaged cement. Accordingly, bulk cement will now attract excise duty of Rs.400 per Metric Tonne or 14 per cent ad valorem, whichever is higher. Cement clinkers will be liable to excise duty of Rs.450 per Metric Tonne.

151. Similarly, I propose to increase the excise duty on packaged software from 8 per cent to 12 per cent to bring it on par with customised software which will attract a service tax of 12 per cent.

152. Non-filter cigarettes are more toxic than filter cigarettes, yet they enjoy a favourable tax regime, which is iniquitous. I propose to tax both filter and non-filter cigarettes on par by applying - as Honourable Members may have guessed - the higher rates.

153. In order to remove a source of misinformation, I propose to abolish the ad valorem part of the excise duty on unbranded petrol and unbranded diesel and replace the same by an equivalent specific duty of Rs.1.35 per litre. Henceforth, there will be only a specific duty of Rs.14.35 per litre on unbranded petrol and Rs.4.60 per litre on unbranded diesel. There will be no impact on retail prices.

154. An excise duty of 1 per cent called NCCD is now imposed on polyester filament yarn, which is the only yarn suffering this excise duty. I propose to remove that duty and shift the levy to cellular mobile phones.

155. Finally, I turn to my proposals on service tax.

156. 55 per cent of the GDP is contributed by the services sector, which is a growing sector that must contribute its legitimate share to the exchequer. I propose to bring under the service tax net four services. They are:-

(i) asset management service provided under ULIP, to bring it on par with asset management service provided under mutual funds;

(iv) customised software, to bring it on par with packaged software and other IT services

157. I also propose to remove unwarranted doubts raised in respect of certain services and clarify that they are liable to service tax. These include money changers, persons running games of chance, and tour operators using contract carriage vehicles.

158. There are some miscellaneous changes but I do not wish to burden the House with the same.

159. Finally, I am happy to announce that the threshold limit of exemption for small service providers will be increased from Rs.8 lakhs per year to Rs.10 lakh per year. As a result, about 65,000 small service providers will go out of the tax net.

Direct Taxes

160. I shall now deal with direct taxes.

161. I recall the Budget Speech of 1997. I believe that boldness pays. I also believe that trust will beget trust, moderation will beget revenues and fairness will beget compliance. Income tax payers have made out a persuasive case for some relief. Accordingly, I propose to make some changes in the slabs for personal income tax. I propose to increase the threshold limit of exemption:

• in the case of all assesses, from Rs.110,000 to Rs.150,000, thus giving every assessee a relief at a minimum of Rs.4,000. Consequently, the four slabs and rates will be as follows:

Up to Rs.150,000 NIL

Rs.150,001 to Rs.300,000 10 per cent

Rs.300,001 to Rs.500,000 20 per cent

Rs.500,001 and above 30 per cent

• in the case of a woman assessee, from Rs.145,000 to Rs.180,000;

• in the case of a senior citizen, from Rs.195,000 to Rs.225,000.

162. I do not propose to make any change in the corporate income tax rates.

163. No change is proposed in the rate of surcharge.

164. I propose to add the Senior Citizens Savings Scheme 2004 and the Post Office Time Deposit Account to the basket of saving instruments under Section 80C of the Income Tax Act.

165. I propose to allow an additional deduction of Rs.15,000 under Section 80D to an individual who pays medical insurance premium for his/her parent or parents.

166. The Reverse Mortgage Scheme was notified by the National Housing Bank in the current financial year. In order to clarify the tax issues arising out of the scheme, I propose to amend the Income Tax Act to provide that:

(i) reverse mortgage would not amount to "transfer"; and

(ii) the stream of revenue received by the senior citizen would not be "income";

167. Agricultural income is exempt from income tax. However, courts have ruled that growing saplings or seedlings on land is agriculture but growing them in pots is not agriculture. This does not seem fair. Hence, I propose to exempt from tax income arising from saplings or seedlings grown in a nursery.

168. Companies engaged in certain businesses are allowed a weighted deduction of 150 per cent on any expenditure on in-house scientific research. I propose to add the business of production of seeds and manufacture of agricultural implements to this list.

169. In order to promote outsourcing of research, I propose to allow a weighted deduction of 125 per cent on any payment made to companies engaged in research and development.

170. I propose to extend the benefit of amortisation of certain preliminary expenses under Section 35D to assesses in the services sector.

171. To supplement measures that I announced earlier in respect of the corporate debt market, I propose to exempt from TDS corporate debt instruments issued in demat form and listed on recognised stock exchanges.

172. I propose to make some changes in the provisions of law pertaining to Fringe Benefit Tax (FBT) that will give some relief to corporates and firms. Crèche facilities, sponsorship of an employee-sportsperson, organising sports events for employees, and guest houses will be excluded from the purview of FBT.

173. At present, a domestic company is liable to pay Dividend Distribution Tax (DDT). As a result, the distributed dividend is sometimes taxed twice in the hands of a subsidiary company and its parent company, causing hardship. In order to remove the hardship, I propose to allow a parent company to set off the dividend received from its subsidiary company against dividend distributed by the parent company, provided that the dividend received has suffered DDT and the parent company is not a subsidiary of another company.

174. I propose to insert a new sub-section (11C) in Section 80-IB to grant a five year tax holiday to encourage hospitals to be set up anywhere in India, except certain specified urban agglomerations, and especially in tier-2 and tier-3 towns in order to serve the rural hinterland. This window will be open for the period April 1, 2008 to March 31, 2013, during which the hospital must commence operations.

175. Having regard to the significant rise in tourist arrivals, especially for cultural tourism, I propose to grant a five year holiday from income tax to two, three or four star hotels that are established in specified districts which have UNESCO-declared 'World Heritage Sites'. The hotel should be constructed and start functioning during the period April 1, 2008 to March 31, 2013.

176. I am happy to announce that the Coir Board will be included in Section 10(29A) and exempt from income tax.

177. Dividends that are distributed attract a tax of 15 per cent. Short term capital gains attract a tax of 10 per cent under Section 111A. There is merit in equating the rates and hence I propose to increase the rate of tax on short term capital gains under Section 111A and Section 115AD to 15 per cent. This will also encourage investors to stay invested for a longer term.

178. At present, Securities Transaction Tax (STT) paid is allowed as a rebate against tax liability. Further, STT on options is levied on the aggregate of the strike price and the option premium and is borne by the seller. I propose to make some changes. Henceforth, STT paid will be treated like any other deductible expenditure against business income. Further, the levy of STT, in the case of options, will be only on the option premium where the option is not exercised, and the liability will be on the seller. In a case where the option is exercised, the levy will be on the settlement price and the liability will be on the buyer. There will be no change in the present rates.

179. Transactions in commodity futures have come of age. Hence, I propose to introduce the Commodities Transaction Tax (CTT) on the same lines as STT on options and futures.

180. "Charitable purpose" includes relief of the poor, education, medical relief and any other object of general public utility. These activities are tax exempt, as they should be. However, some entities carrying on regular trade, commerce or business or providing services in relation to any trade, commerce or business and earning incomes have sought to claim that their purposes would also fall under "charitable purpose". Obviously, this was not the intention of Parliament and, hence, I propose to amend the law to exclude the aforesaid cases. Genuine charitable organisations will not in any way be affected.

181. The Banking Cash Transaction Tax (BCTT) has served a very useful purpose in enlarging the information system of the Income Tax Department. Since the information is also being gathered through other instruments introduced in the last few years, I propose to withdraw this tax with effect from April 1, 2009.

182. My tax proposals on direct taxes are revenue neutral. On the indirect taxes side, the proposals are estimated to result in a loss of Rs.5,900 crore.

CST and a Roadmap towards GST

183. Following an agreement between the Central Government and the State Governments, the rate of Central Sales Tax was reduced from 4 per cent to 3 per cent in this financial year. It is now proposed to reduce the rate to 2 per cent from April 1, 2008. Consultations are underway on the compensation for losses, if any, and once agreement is reached the new rate will be notified. I am also happy to report that there is considerable progress in preparing a roadmap for introducing the Goods and Services Tax with effect from April 1, 2010.

IX. CONCLUSION

184. Mr. Speaker, Sir, once upon a time India, together with China, accounted for 50 per cent of the world's output. We must regain our position and it is within our capacity to do so.

185. Our work in Government is, every day and every hour, a discovery of the path to reach our goals: full employment, abolition of poverty and elimination of inequality. "These goals can only be achieved by a considerable increase in national income and our economic policy must, therefore, aim at plenty and equitable distribution. We must produce wealth, and then divide it equitably. How can we have a welfare state without wealth?" Those are not my words; they were uttered in 1955 by Pandit Jawaharlal Nehru. Although Jawaharlal Nehru did not use the phrase inclusive growth, he actually spelt out the conditions for inclusive growth.

186. Those words will guide the UPA Government. As always, I turned to my muse, Saint Tiruvalluvar, for guidance and reassurance. 2,000 years ago he set the benchmark for good governance in the following immortal words:

"Kodai Ali Sengol Kudi Ombal Nangum

Udaiyanam Vendharkku Oli"

[Generous grants, compassion, righteous rule

and succour to the downtrodden

Are the hallmarks of good governance]

We have tried to remain true to this philosophy. The four years to 2007-08 have been the best years so far but, may I say with humility, that the best is yet to come.

The plan to set up another commission was taken by the Morarji Desai government in 1978 as per the mandate of the Constitution of India under article 340 for the purpose of Articles like 15 and 16. The decision was made official by the president on January 1, 1979. The commission is popularly known as the Mandal Commission, its chairman being B.P. Mandal.

The Mandal Commission adopted various methods and techniques to collect the necessary data and evidence. The commission adopted 11 criteria which could be grouped under three major headings: social, educational and economic in order to identify OBCs.

(ii) Castes/classes which mainly depend on manual labour for their livelihood.

(iii) castes/classes where at least 25 per cent females and 10 per cent males above the state average get married at an age below 17 years in rural areas and at least 10 per cent females and 5 per cent males do so in urban areas.

(iv) castes/classes where participation of females in work is at least 25 per cent above the state average.

(viii) Castes/classes where the average value of family assets is at least 25 per cent below the state average.(ix) Castes/classes where the number of families living in kuccha houses is at least 25 per cent above the state average.(x) Castes/classes where the source of drinking water is beyond half a kilometer for more than 50 per cent of the households.(xi) Castes/classes where the number of households having taken consumption loans is at least 25 per cent above the state average.Also known as "Creamy layer," this criteria of separation is ignored by the government which is known as the most controversial issue of reservation.

As the above three groups are not of equal importance for the purpose, separate weightage was given to indicators in each group. All the Social indicators were given a weightage of 3 points each, educational indicators were given a weightage of 2 points each and economic indicators were given a weightage of 1 point each. Economic, in addition to Social and Educational Indicators, were considered important as they directly flowed from social and educational backwardness. This also helped to highlight the fact that socially and educationally backward classes are economically backward also.

It will be seen from the values given to each indicator, the total score adds up to 22. All these 11 indicators were applied to all the castes covered by the survey for a particular state. As a result of this application, all castes which had a score of 50 % (i.e. 11 points) were listed as socially and educationally backward and the rest were treated as 'advanced'.

The commission estimated that 54% of the total population (excluding SCs and STs), belonging to 3,743 different castes and communities were ‘backward’.[1] Figures of caste-wise population are not available beyond. So the commission used 1931 census data to calculate the number of OBCs. The population of Hindu OBCs was derived by subtracting from the total population of Hindus, the population of SC and ST and that of forward Hindu castes and communities, and it worked out to be 52 per cent.[2] Assuming that roughly the proportion of OBCs amongst non-Hindus was of the same order as amongst the Hindus, population of non-Hindu OBCs was also considered as 52 per cent.[1]

Assuming that a child from an advanced class family and that of a backward class family had the same intelligence at the time of their birth, it is obvious that owing to vast differences in social, cultural and environmental factors, the former will beat the latter by lengths in any competitive field. Even if a backward class child’s intelligence quotient was much higher as compared to the child of advanced class, chances are that the former will lag far behind the latter in any competition where selection is made on the basis of ‘merit’.

In fact, what we call ‘merit’ in an elitist society is an amalgam of native endowments and environmental privileges. A child from an advanced class family and that of a backward class family are not ‘equals’ in any fair sense of the term and it will be unfair to judge them by the same yard-stick. The conscience of a civilized society and the dictates of social justice demand that ‘merit’ and ‘equality’ are not turned into a fetish and the element of privilege is duly recognised and discounted for when ‘unequal’ are made to run the same race.[3]

To place the amalgams of open caste conflicts in proper historical context, the study done by Tata institute of Social Sciences Bombay observes. “The British rulers produced many structural disturbances in the Hindu caste structure, and these were contradictory in nature and impact …. Thus, the various impacts of the British rule on the Hindu caste system, viz., near monopolisation of jobs, education and professions by the literati castes, the Western concepts of equality and justice undermining the Hindu hierarchical dispensation, the phenomenon of Sanskritization, genteel reform movement from above and militant reform movements from below, emergence of the caste associations with a new role set the stage for the caste conflicts in modern India. Two more ingredients which were very weak in the British period, viz., politicisation of the masses and universal adult franchise, became powerful moving forces after the Independence.[4]

The report of the commission was submitted in December 1990. Following are the recommendations as stated in the report.[5]

13.1 It may appear the upliftment of Other Backward Classes is part of the larger national problem of the removal of mass poverty. This is only partially correct. The deprivation of OBCs is a very special case of the larger national issue: here the basic question is that of social and educational backwardness and poverty is only a direct consequence of these two crippling caste-based handicaps. As these handicaps are embedded in our social structure, their removal will require far – reaching structural changes. No less important will be changes in the perception of the problems of OBCs by the ruling classes of the country.

13.2 One such change in the attitude of the ruling elite pertains to the provisions of reservation in Government services and educations institutions for the candidates of Other Backward Classes. It is generally argued that looking to the large population of OBCs (52 %), recruitment of a few thousand OBCs every year against reserved vacancies is not going to produce any perceptible impact on their general condition. On the other hand, the induction of a large proportion of employees against reserved vacancies will considerably impair the quality and efficiency of the Government services. It is also stated that the benefits of such reservations will be skimmed off by those sections of OBCs which are already well off and the really backward sections will be left high and dry. Another argument advanced against this approach is that the policy of large scale reservations will cause great hurt burning to those meritorious candidates whose entry into services will be barred as a result thereof.

13.3 All the above arguments are based on fairly sound reasoning. But these are also the arguments advanced by the ruling elite which is keen on preserving its privileges. Therefore, like all such reasoning, it is based on partisan approach. By the same token, while illuminating some immediate areas of concern it tends to ignore much larger issues of national importance.

13.4 It is not at all our contention that by offering a few thousand jobs to OBC candidates we shall be able to make 52% of the Indian population as forward. But we must recognise that as essential part of the battle against social backwardness is to be fought in the minds of the backward people. In India Government service has always been looked upon as a symbol of prestige and power. By increasing the representation of OBCs in Government services, we give them an immediate feeling of participation in the governance of this country. When a backward class candidate becomes a Collector or a Superintendent of Police, the material benefits accruing from his position are limited to the members of his family only. But the psychological spin off of this phenomenon is tremendous; the entire community of that backward class candidate feels socially elevated. Even when no tangible benefits flow to the community at large, the feeling that now it has its “own man” in the “corridors of power” acts as a morale booster.

13.5 In a democratic set-up every individual and community has a legitimate right and aspiration to participate in ruling this country. Any situation which results in a near-denial of this right to nearly 52% of the country’s population needs to be urgently rectified.

13.6 Apprehensions regarding drop in the quality of Government services owing to large-scale induction of S.C. / S.T. and O.B.C. candidates against reserved posts may be justified only up to a point. But is it possible to maintain that all candidates selected on merit turn out to be honest, efficient, hard-working and dedicated? At present, top echelons of all the Government services are manned predominantly by open competition candidates and if the performance of our bureaucracy is any indication, it has not exactly covered itself with glory. Of course, this does not imply that candidates selected against reserved posts will do better. Chances are that owing to their social and cultural handicaps they may be generally a shade less competent. But, on the other hand, they will have great advantage of possessing first hand knowledge of the sufferings and problems of the backward sections of society. This is not a small asset for field workers and policy makers even at highest level.

13.7 It is no doubt true that the major benefits of reservation and other welfare measures for Other Backward Classes will be cornered by the more advanced sections of the backward communities. But is not this a universal phenomenon? All reformists remedies have to contend with slow recovery along the hierarchical gradient; there are no quantum jumps in social reform. Moreover, human nature being what it is, a “new class” ultimately does emerge even in classless societies. The chief merit on reservation is not that it will introduce egalitarian amongst OBCs when the rest of the Indian society is seized by all sorts of inequalities. But reservation will certainly erode the hold of higher castes on the services and enable OBCs in general to have a sense of participation in running the affairs of the country.

13.8 It is certainly true that reservation for OBCs will cause a lot of heart burning to others. But should the mere fact of this heart burning be allowed to operate as a moral veto against social reform…. When the higher castes constituting less than 20% of the country’s population subjected the rest to all manner of social injustice, it must have caused a lot of heart burning to the lower castes. But now that the lower castes are asking for a modest share of the national cake of power and prestige, a chorus of alarm is being raised on the plea that this will cause heart burning to the ruling elite. Of all the specious arguments advanced against reservations for backward classes, there is none which beats this one about ‘heart-burning’ in sheer sophistry.

13.9 In fact the Hindu society has always operated a very rigorous scheme of reservations, which was internalised through caste system. Eklavya lost his thumb and Shambhk his neck for their breach of caste rules of reservations. The present furore against reservations for OBCs is not aimed at the principle itself, but against the new class of beneficiaries, as they are now clamouring for a share of the opportunities which were all along monopolised by the higher castes.

13.10 Scheduled Castes and Scheduled Tribes constitute 22.5% of the country’s population. Accordingly, a pro-rata reservation of 22.5% has been made for them in all services and public sector undertakings under the Central Government. In the States also, reservation for SCs and STs is directly proportional to their population in each State.

13.11 As stated in the last Chapter (para 12.22) the population of OBCs, both Hindu and non-Hindu, is around 52% of the total population of India. Accordingly 52% of all post under the Central Government should be reserved for them, but this provision may go against the law laid down in a number of Supreme Court judgements wherein it has been held that the total quantum of reservations under Articles 15(4) and 16(4) of the Constitution should be below 50%. In view of this the proposed reservation for OBCs would have to be pegged at a figure which, when added to 22.5% of SCs and STs, remain below 50%. In view of this legal constrain, the commission is obliged to recommend a reservation of 27% only, even though their population us almost twice this figure.

13.12 States which have already introduced reservation for OBCs exceeding 27%, will remain unaffected by this recommendation.

13.13 With the above general recommendation regarding the quantum of reservation, the Commission proposes the following over-all scheme of reservation for OBCs:-

(1) Candidates belonging to OBCs recruited on the basis of merit in an open competition should not be adjusted against their reservation quota of 27%.

(2) The above reservation should also be made available to promotion quota at all levels. nitika goyal (3) Reserved quota remaining unfilled should be carried forward for a period of three years and deserved thereafter.

(4) Relaxation in the upper age limit for direct recruitment should be extended in the same manner as done in case of SCs and STs.

(5) A roster system for each category of posts should be adopted by the concerned authorities in the same manner as presently done in respect of SC and ST candidates.

13.14 The above scheme of reservations in its toto should be made applicable to all recruitment to public sector undertakings both under the Central and State Governments, as also to nationalised banks.

13.15 All private sector undertakings which have received financial assistance from the Government in one form or the other should also be obliged to recruit personnel on the aforesaid basis.

13.16 All universities and affiliated colleges should also be covered by the above scheme of reservation.

13.17 To give proper effect to these recommendations, it is imperative that adequate statutory provisions are made by the Government to amend the existing enactments, rules, procedure, etc. to the extentthey are not in consonance with the same.

13.18 Our educational system is elitist in character, results in a high degree of wastage and is least suited to the requirements of an over-populated and developing country. It is a legacy of the British rule which was severely criticised during the independence struggle, and yet, it has not undergone any structural changes. Though it is least suited to the needs of backward classes, yet, they are forced to run the rat-race with others as no options are available to them. As ‘educational reform’ was not within the terms of reference of the Commission, we are also forced to trend the beaten track and suggest only the palliative measure within existing framework.

13.19 Various State Governments are giving a number of educational concessions to other backward class students (Chapter IX, paras 9.30 – 9.33) like exemption of tuition fees, free supply of books and clothes, mid-day meals, special hostel facilities, stipends, etc. These concessions are all right as far as they go. But they do not go far enough. What is required is, perhaps, not so much the provision of additional funds as the framing of integrated schemes for creating the proper environment and incentives for serious and purposeful studies.

13.20 It is well known that most backward class children are irregular and indifferent students and their drop-out rate is very high. There are two main reasons for this. First, these children are brought up in a climate of extreme social and cultural deprivation and consequently, a proper motivation for schooling is generally lacking. Secondly, most of these children come from very poor homes and their parents are forced to press them into doing small chores from a very young age.

13.21 Upgrading the cultural environment is a very slow process. Transferring these children to an artificially upgraded environment is beyond the present resources of the country. In view of this it is recommended that this problem may be tackled on a limited and selective basis on two fronts.

13.22 First, an intensive and time bound programme for adult education should be launched in selected pockets with high concentration of OBC population. This is a basic motivational approach, as only proper motivated parents will take serious interest in educating their children. Secondly, residential schools should be set up in these areas for backward class students to provide a climate specially conducive to serious studies. All facilities in these schools including board and lodging, will have to be provided free of cost to attract students from poor and backward homes, separate Government Hostels for OBC students with the above facilities will be another step in the right direction.

13.23 A beginning on both these fronts will have to be made on a limited scale and selective basis. But the scope of these activities should be expanded as fast as the resources permit. Adult education programme and residential schools started on a selective basis will operate as growing-points of consciousness for the entire community and their multiplier effect is bound to be substantial. Whereas several States are extended a number of ad hoc concessions to backward class students, few serious attempts have been made to integrate these facilities into a comprehensive scheme for a qualitative upgradation of educational environment available to OBC students.

13.24 After all, education is the best catalyst of change and educating the backward classes is the surest way to improve their self image and raise their social status. As OBCs cannot afford the high wastage rates of our educational system, it is very important that their education is highly biased in favour of vocational training. After all reservation in services will absorb only a very small percentage of the educated backward classes and the rest should be suitably equipped with vocational skills to enable them to get a return on having invested several years in education.

13.25 It is also obvious that even if all the above facilities are given to OBC students, they will not be able to compete on an equal footing with others in securing admission to technical and professional institutions. In view of this it is recommended that seats should be reserved for OBC students in all scientific, technical and professional institutions run by the Central Government as well as State Governments. This reservation will fall under Article 15(4) of the Constitution and the quantum of reservation should be the same as in the Government services, i.e., 27%. Those States which have already reserved more that 27% seats for OBC students will remain unaffected by this recommendation.

13.26 While implementing the provisions for reservation it should also be ensured that the candidates who are admitted against the reserved quota are enable to derive full benefits of higher studies. It has been generally noticed that these OBC students coming from an impoverished cultural background, are not able to keep abreast with other students. It is, therefore, very essential that special coaching facilities are arranged for all such students in our technical and professional institutions. The concerned authorities should clearly appreciate that their jobs is not finished once candidates against reserved quota have been admitted to various institutions. In fact the real task starts only after that special coaching assistance to these students, not only these young people will feel frustrated and humiliated but the country will also be landed with ill-equipped and sub-standard engineers, doctors and other professionals.

13.27 Vocational communities following hereditary occupations have suffered heavily as a result of industrialisation. Mechanical production and introductions of synthetic materials has robbed the village potter, oil crusher, blacksmith, carpenter, etc. of their traditional means of livelihood and the pauperisation of these classes is a well-known phenomenon in the countryside.

13.28 It has, therefore become very necessary that suitable institutional finance and technical assistance is made available to such members of village vocational communities who want to set up small-scale industries on their own. Similar assistance should also be provided to those promising OBC candidates who have obtained special vocational training.

13.29 Of course, most State Governments have created various financial and technical agencies for the promotions of small and medium scale industries. But it is well known that only the more influential members of the community are able to derive benefits fro these agencies. In view of this, it is essential that separate financial institutions for providing financial and technical assistance are established for the backward classes. Some State Governments like Karnataka and Andhra Pradesh have already set up separate financial corporations etc, for OBCs.

13.30 Cooperative Societies of occupational groups will also help a lot. But due care should be taken that all office-bearers and members of such societies belong to the concerned hereditary occupational groups and outsiders are not allowed to exploit them by infiltrating into such cooperatives.

13.31 The share of OBCs in the industrial and business life of the country is negligible and this partly explains their extremely low income levels. As a part of its overall strategy to uplift the backward classes, it is imperative that all State Governments are suitably advised and encouraged to create a separate network of financial and technical institutions to foster business and industrial enterprise among OBCs.

13.32 Reservations in Government employment and educational institutions, as also as possible financial assistance will remain mere palliatives unless the problems of backwardness is tackled at its root. Bulk of the small land-holders, tenants, agricultural labour, impoverished village artisans, unskilled workers, etc. belong to Scheduled Castes, Scheduled Tribes and Other Backward Classes. “Apart from social traditions, the dominances by the top peasantry is exercised through recourse to informal bondage which arises mainly thorough money-lending, leasing out of small bits of land and providing house-sites and dwelling space to poor peasants. As most of the functionaries of the Government are drawn from the top peasantry, the class and caste linkage between the functionaries of Government and the top peasantry remain firm. This also tills the socio-political balance in favour of the top peasantry and helps it in having its dominance over others.” * [6]

13.33 The net outcome of the above situation is that notwithstanding their numerical preponderance, backward class continues to remain in mental and material bondage of the higher castes and rich peasantry. Consequently, despite constituting nearly 3/4th of the countries population, Scheduled Castes, Scheduled Tribes and Other Backward Classes have been able to acquire a very limited political clout, even though adult franchise was introduced more than three decades back. Through their literal monopoly of means of production of higher castes are able to manipulate and coerce the backward classes into acting against their own interests. In view of this, until the stranglehold of the existing production relations is broken through radical land reforms, the abject dependence of under privileged classes on the dominant higher castes will continue indefinitely. In fact there is already a sizeable volume of legislation on the statue books to abolish zamindari, place ceilings on land holdings and distribute land to the landless. But in actual practice its implementation has been halting, half-hearted and superficial. The States like Karnataka, Kerala and West Bengal which have gone about the job more earnestly have not only succeeded in materially helping the Backward Classes, but also reaped rich political dividends into the bargains.

13.34 It is the Commission’s firm Conviction that a radical transformation of the existing production relations is the most important single step that can be taken for the welfare and upliftment of all backward classes. Even if this is not possible in the industrial sector for various reasons, in the agricultural sector a change in this nature is both feasible and overdue.

13.35 The Commission, therefore, strongly recommends that all the State Governments should be directed to enact and implement progressive land legislations so as to effect basic structural changes in the existing production relations in the countryside.

13.36 At present surplus land in being allotted to SCs and STs. A part of the surplus land becoming available in future as a result of the operation of land ceiling laws etc. should also be allotted to the OBC landless labour.

13.37 (1) Certain sections of some occupational communities like Fishermen, Banjaras, Bansoforas, Khatwes etc. still suffer from the stigma of untouchability in some part of the country. They have been listed as O.B.Cs. by the Commission, but their inclusion in the lists of Scheduled Castes / Scheduled Tribes may be considered by the Government.

(2) Backward Classes Development Corporations should be set up both at the Central and State levels to implement various socio-educational and economic measures for their advancement.

(3) A separate Ministry / Department for O.B.Cs. at the Centre and States should be created to safe-guard their interests.

(4) With a view to giving better representation to certain very backward sections of O.B.Cs. like the Gaddis of Himachal Pradesh, Neo-Buddhists in Maharashtra, Fishermen in the Coastal areas, Gujjars in J&K., it is recommended that areas of their concentration may be carved out into separate constituencies at the time of delimitation.

13.38 At present no Central Assistance is available to any State Government for implementing any welfare measures for Other Backward Classes. The 18 States and Union Territories which have undertaken such measures have to provide funds from their own resources. During the Commission’s tours practically every State Government pointed out that unless the Centre is prepared to liberally finance all special schemes for the upliftment of OBCs, it will be beyond the available resources of the States to undertake any worthwhile programme for the benefit of Other Backward Classes.

13.39 The Commission fully shares the views of the State Governments in this matter and strongly recommends that all development programmes specially designed for Other Backward Classes should be financed by the Central Government in the same manner and to the same extent as done in the case of Scheduled Castes and Scheduled Tribes.

13.40 Regarding the period of operation of the Commission’s recommendations entire scheme should be reviewed after twenty years. We have advisedly suggested this span of one generation, as the raising of social consciousness is a generational progress. Any review at a shorter interval would be rather arbitrary and would not give a fair indication of the impact of our recommendations on the prevailing status and life-styles of O.B.Cs.[7]

All the recommendations of the report are not yet implemented. The recommendation of reservations for OBC's in government services was implemented in 1993. As on 27 June 2008 there is still a backlog of 28, 670 OBC vacancies in government jobs.[8] The recommendation of reservations in Higher educational institutes is implemented in 2008.

**NFHS Survey estimated only Hindu OBC population. Total OBC population derived by assuming Muslim OBC population in same proportion as Hindu OBC population)

The National Sample Survey puts the figure at 32%[2]. There is substantial debate over the exact number of OBC's in India, with census data compromised by partisan politics. It is generally estimated to be sizable, but lower than the figures quoted by either the Mandal Commission or and National Sample Survey[3].

There is also an ongoing controversy about the estimation logic used by Mandal commission for calculating OBC population. Famous Indian Statistician,Mr.Yogendra Yadav who supports Reservations agrees that there is no empirical basis to the Mandal figure. According to him "It is a mythical construct based on reducing the number of SC/ST, Muslims and others and then arriving at a number.”[citation needed]

National Sample Survey's 1999-2000 round estimated around 36 per cent of the country's population is defined as belonging to the Other Backward Classes (OBC). The proportion falls to 32 per cent on excluding Muslim OBCs. A survey conducted in 1998 by National Family Health Statistics (NFHS) puts the proportion of non-Muslim OBCs as 29.8 per cent[9]

L R Naik, the only Dalit member in the Mandal Commission refused to sign the Mandal recommendations.[10] He said that there are two social blocks among the OBCs: upper OBCs (Yadavs, Kurmis, Jats etc.) and Most Backward Classes (MBCs). He feared that upper OBCs would corner all the benefits of reservation.

Here we shall present the study of the Mandal Commissions’s list of the OBC for the state of West Bengal only for the sake of brevity. In this list, Urao (along with its synonyms Bandot, Haro, Karkata, Luidu, Shitheo, Tigga and Tirki) has been listed as an OBC (OBC No.176). On the other hand, it is already in the list of Scheduled Tribes for the state with a slight difference of spelling “Oraon” (ST 33). Similarly, Scheduled Tribes Kharia (OBC 105; synonym of Lodha, ST 23 in the ST List), Kherwar (OBC 107; ST 17, with a spelling Kharwar), Koda (OBC 113; ST 20, spelled Kora), Bhotia (OBC 33; ST 5, spelled Bhutia), Brijia (OBC 39, ST 7, with a spelling Birjia), Gonda (OBC 68; ST 12, spelled Gond) and Lakra (OBC 123, and Lakar OBC 122, which is actually a surname adopted by many members of the Scheduled Tribe Munda), which are already declared STs for the state. Tharu (OBC 171) is a widely studied scheduled tribe. Thapa (OBC 170) is a synonym of ST Sherpa (ST 5, same as Bhutia, Tota, Dukpa, Kagatay, Tibetan, Yolmo). Many famous ST surnames have been listed as OBC Mahato (OBC 129), etc. Other anthropologically famous scheduled tribes listed as OBC are Kuki (OBC 118), Lushei (actually Lushai; OBC 124), Koli (OBC 116) and Rohangia.

Similar manipulation has been done with many Scheduled Castes also. For example in the state of West Bengal, Bhangi has been listed as OBC (No. 26), with a rider “excluding those in the Scheduled Caste”. On the other hand the SC list for West Bengal shows that Bhangi (at place no. 22 in the SC list) is an unconditional SC for the whole of the territory of the state. Halalkhor has also been listed as an OBC (No. 73) with a similar condition as above, but this caste is also an unconditional SC (No. 21, spelled Halelkhor). A sub-caste of Dom (Maghaiya-Dom) has been listed as OBC at place No. 126. Dom as a whole has been a Scheduled Caste (No.17 in West Bengal SC list) for ages. Bahelia (SC No. 2) has been listed by its synonym Chirimar (OBC 45). Bagal (OBC 11) is already there in the SC list at place number 1, with a spelling Bagll. Although Nat is an SC (No. 47), its sub-caste Karwal-Nat has been made an OBC (OBC 97). Jaliya Kaivartta (SC 23) is just the Sanskritized name of Machua listed as OBC (OBC 125). All the Nav-Buddhists (Neo-Buddhist) have been include in the OBC list, which is again an anomaly, because the Nav-Buddhists enjoy their SC status.

Not only synonyms or alternative spellings of the SCs and STs have been recorded as OBC, but also there are other types of manipulations like same OBC caste has been listed twice or sometimes thrice in the list of the same state. An example of this type of manipulation is Kahar in Bihar list (No. 23 as well as No. 70), Kewat (at no. 115 as well as 84.)

At any rate the list is vitiated by such inclusions. The Kuki tribes (ST) actually live in Nagaland, Meghalaya, Mizoram and Tripura, none of which are neighboring to West Bengal. Even if any member of the tribe migrates to West Bengal or anywhere else in India, either it retains its ST status of the mother state or becomes General population. It is difficult to believe that some Kuki tribes live in West Bengal as OBC. Lushai tribe (ST) live mainly in Mizoram and are the principal Mizo tribe. They are also found in Manipur as ST. Koli (ST) are found in a widespread area ranging from Orissa to Rajasthan up to Karnatak. Rohangia ((OBC 158) are actually a distant tribe which mainly live in Myanmar but are also found in Bangla Desh-Myanmar-Tripura border areas). Introduction of such castes to the West Bengal OBC list seems to be an act of fertile brain and raises doubt whether any actual survey was done at all. At any rate a small number of these tribes could be present in the former East Bengal (now Bangla Desh) in areas adjoining former state of Assam and Myanmar before partition.

Some OBC caste names given in the list are obsolete of forward castes. Tyagi is an upper caste, which lives in UP, Haryana and Delhi. This caste was earlier called Taga. But with a general trend of all the North Indian castes to Sanskritize their names, Taga people adopted a new name Tyagi which was similar to Taga. But still in the remote village especially by the illiterate people Tyagis are often called Taga. We find the name of Taga in Haryana Mandal list (OBC 74), Delhi (OBC 81) and Uttar Pradesh (OBC 109, as Taga-Bhat). The principles and norms set in the very beginning regarding the criterion for the Non-Hindu communities have been violated flagrantly, hence now the Roman Catholic is not a religion but a caste in the eyes of the Mandal Commission (Latin Catholic, OBC 106, Kerala). Anglo-Indians, who are the off-springs of the British rulers, have also been made an Other Backward Caste (OBC 6, Kerala). Although it has been decided at the outset that only occupational castes among the Muslims and Christians and the castes bearing the same name as a Hindu OBC or SC will be included as a Muslim or Christian OBC caste, the set rule was violated wherever political expediency dictated. For example Kayastha (Muslim) has been made an OBC (OBC 93, Uttar Pradesh) which does not fulfill the criteria set for inclusion of non-Hindu castes. A last word about credibility of the Mandal survey. Presence of obsolete and archaic caste names like Taga (for Tyagi in Haryana, Delhi and UP), Bhui-har (for Bhumi-har in Bihar), Domb (for Dom in all the southern states), listing of Kuki, Lushai, Rohangia tribes in West Bengal which are not found in West Bengal today but actually some of each of them lived in East Bengal in undivided India neighbouring Tripura, Meghalaya etc., and many such factors cannot be explained unless it is assumed that the Mandal list is not result of a recent survey, but it has been compiled by editing the caste list of 1931 census. But the editing was most inefficient. These names could not have crept in unless the old united Bengla caste list of 1931 was just copied and some named SC & ST, as well as well known forward caste names were just deleted, to arrive at the current OBC list of Mandal.

Every state’s OBC list has the same story. The entire list seems to be manipulated, but most carelessly and inefficiently manipulated. Most famous scheduled castes like Dusadh (Dhari), Mochi, Domb (Dom) and Bhangi have been put as OBCs in many states. If the Government does not reject this whole Mandal list, all the SCs and STs listed as OBC will have to be deleted from the respective SC and ST lists. Because the Mandal Commission was a constitutional body which had done a survey and this survey was done at a later date than the surveys for the SC and ST, which were done during the British period without the authority of our present Indian Constitution. Indeed any act (or survey) done under the authority of Indian Constitution automatically supersedes any act (or survey) of the British administration if there is an overlap or confusion.

A decade after the commission gave its report, V.P. Singh, the Prime Minister at the time, tried to implement its recommendations in 1989. The criticism was sharp and colleges across the country held massive protests against it. Soon after, Rajiv Goswami, student of Delhi University, threatened self-immolation in protest of the government's actions. His act further sparked a series of self-immolations by other college students and led to a formidable movement against job reservations for Backward Castes in India.

As a consequence of legislating to provide reservations for Christians and Muslim, religious minorities in all government education institutions will be introduced [11] which is contrary to the ideas of secularism, and is a form of discrimination on the basis of religion.

Most often, only economically sound people (and rather rich) from the so-called lower castes will make use of most of the reserved seats, thus counteracting the spirit of reservations.[12] Political parties know reservations are no way to improve the lot of the poor and the backward. They support them because of self-interest of the “creamy layer”, who use the reservations to further their own family interests, and as a political flag of ‘achievement’ during election campaigns.[13] In fact, several studies show that the OBC class is quite comparable with the general caste in terms of annual per capita consumption expenditure, and the top strata of OBC is ahead in a host of consumption areas.[14]

The quality of these elite institutes may go down, because merit is severely being compromised by reserving seats for certain caste-based communities.[15]

There are no efforts made to give proper primary education to truly deprived classes,[12] so there is no need to reserve seats for higher studies. The government schools in India have absolutely no comparison to the public schools in the developed countries, and only about 65% of the Indian population is literate,[16]. The critics argue that "reservation" only in higher institutions and jobs, without improving primary and secondary education, cannot solve this problem.[13]

The government is dividing people on the basis of castes for political advantages.[15]

The caste system is kept alive through these measures. Instead of coming up with alternative innovative ideas which make sure equal representation at the same time making the caste system irrelevant, the decision is only fortifying the caste system.

Not everyone from the so-called upper classes are rich, and not all from so called lower classes are poor.[13]

The reservation policy of the Indian Congress will create a huge unrest in the Indian society.[15][17] Providing quotas on the basis of caste and not on the basis of merit will deter the determination of many educated and deserving students of India.[15]

Multi-national companies will be deterred by this action of the government, and foreign investment in India may dry down, hurting the growth of the Indian economy.[13] Doubtless, urgent actions to improve the lot of the majority, which has not benefited from development — not achieved after 55 years of reservations for scheduled castes — are essential. But this must not hazard improving the economy’s competitiveness in a very competitive world.[13]

There are already talks of reservations in the private sector.[13] If even after providing so many facilities to reserved categories during education, if there is no adequate representation of those people in the work force, there must be some problems with the education system.

Critics of the Mandal Commission argue that it is unfair to accord people special privileges on the basis of caste, even in order to redress traditional caste discrimination. They argue that those that deserve the seat through merit will be at a disadvantage. They reflect on the repercussions of unqualified candidates assuming critical positions in society (doctors, engineers, etc). As the debate on OBC reservations spreads, a few interesting facts which raise pertinent question are already apparent. To begin with, do we have a clear idea what proportion of our population is OBC? According to the Mandal Commission (1980) it is 52 percent. According to 2001 Indian Census, out of India's population of 1,028,737,436 the Scheduled Castes comprise 166,635,700 and Scheduled Tribes 84,326,240, that is 16.2% and 8.2% respectively. There is no data on OBCs in the census.[18] However, according to National Sample Survey's 1999-2000 round around 36 per cent of the country's population is defined as belonging to the Other Backward Classes (OBC). The proportion falls to 32 per cent on excluding Muslim OBCs. A survey conducted in 1998 by National Family Health Statistics (NFHS) puts the proportion of non-Muslim OBCs as 29.8 per cent.[19] The NSSO data also shows that already 23.5 per cent of college seats are occupied by OBCs. That's just 8.6 per cent short of their share of population according to the same survey. Other arguments include that entrenching the separate legal status of OBCs and SC/STs will perpetuate caste differentiation and encourage competition among communities at the expense of national unity. They believe that only a small new elite of educated Dalits, Adivasis, and OBCs benefit from reservations, and that such measures do nothing to lift the mass of people out of backwardness and poverty.

Lalgarh: A People’s Uprising Subverted by the Ultra-Leftists

Santosh Rana

Lalgarh is in the Jhargram sub-division of West Midnapore district in West Bengal (WB). It is part of the Paschimanchal (western zone) of the State, being an extension of the Chhotanagpur plateau which lies mostly in Jharkhand.

With its laterite soil of low water-retention capacity and Sal-Mahua forests, the area differs from the Bengal plains both geographically and culturally. It is actually part of the Jharkhand cultural region. Nearly 30 percent of the population are Scheduled Tribes (ST), 20 percent Scheduled Castes (SC) and the rest are communities like Kudmi-Mahatos, Telis, Kumbhars, Bagals, Rajus, Tambulis, Khandaits and others. The Kudmi-Mahatos are the biggest among the rest. They had been treated as tribals till 1935 when they were de-scheduled. The Mahatos, Bagals and some other communities are actually semi-tribals who have been partly Sanskritized but still retain their tribal characteristics. Now they are treated as Other Backward Classes (OBC). There are other OBC communities like Kumbhar, Tanti, Teli and others. But in West Bengal, benefits for OBCs started late. Even now, there is very little reservation for OBCs in West Bengal. It is only 7 percent, and, that too, in government jobs. There is no reservation for the OBCs in higher education in WB. The SC communities living in the region (Bagdi, Dom, Jele, Mal, Bauri, etc.) are so backward that they are unable to get government or semi-government jobs through reservations. The tribals are 30 percent of the population locally, but in local jobs, they get only the 6 percent reservation that is the State average for the STs. As a consequence of all these factors, the people of this region have very little participation in government and semi-government jobs or in the administration.

This has many devastating effects, especially in the field of education. Among the primary school teachers, there are only 6 percent STs though the STs are 30 percent of the population. So there are many primary schools where the students are Santhals and Mundas but the teachers are non-tribals who do not understand the language of the students. This creates a language barrier between the teachers and the students. Apart from poverty, this is one of the reasons for the large drop-out rates among the tribals. Those tribal boys and girls who manage to reach the portals of higher, especially scientific and technical, learning are systematically excluded by defying the laws regarding positive discrimination. For example, the STs are deprived of their admission quotas in medical and engineering colleges by the West Bengal government. Since 2001, the rules of admission have been manipulated in such a way that 90 percent of the ST quotas remain unfulfilled in medical education.

Due to the laterite soil and lack of irrigation, agriculture is poor and uncertain. Forests provided some means of livelihood traditionally but the colonial forest policy deprived the people of this source. Those policies were continued even after independence. Unemployment, poverty, illiteracy and hunger are everyday companions of the people. This zone has a high concentration of agricultural labourers. In West Bengal as a whole, agricultural labourers are 25 percent of the main workers but in this region, they are 50 percent. Concentration of agricultural labourers and lack of employment is the cause of seasonal migration, known as going “Namal” (low lands of the Gangetic plains). There are also cases of migration to far-off places like Gujarat, Maharastra and Madhya Pradesh.

The Uprising

On the first week of November 2008, the Chief Minister of WB had gone to Salboni to inaugurate a steel plant of the Jindals under the SEZ scheme. The Maoist squads operating in the area blasted a land-mine on his return route. It missed the target but the State government ordered night-raids in the villages of the Lalgarh block. Since the colonial days, night-raids on tribal villages by police take the form of inhuman attacks on the people, unrestricted by any law. The police repression ignited a massive uprising of the masses. The Santhals were the main force in the uprising but other communities like the Mundas and the Mahatos also joined the struggle. The Bharat Jakat Majhi (traditional headmen) Marwah – Association of Majhis – was at the forefront of the struggle at the initial phase. Different factions of Jharkhand Party and the CPI(ML) also joined the movement and it spread to adjoining areas in Jhargram, Bankura and Purulia. It took the form of a blockade of the highways and some other roads. For nearly a week, the entire region was blocked. At this stage, the leadership of the Majhi Marwah entered into negotiations with the administration. The administration conceded some of their demands and they decided to withdraw the blockade. However, the younger sections refused to withdraw the blockade at this stage. A People’s Committee Against Police Atrocities (PCPA) was constituted and the blockade continued. At the time of its formation, there were people of different political opinions in this committee though it was dominated by Maoist cadres and sympathizers. In the first week of December, the PCPA entered into negotiations with the government and withdrew the blockade. The terms of agreement were more or less the same as those negotiated by the Majhi Marwah. The movement was so strong that the administration had to withdraw eight police camps from the sensitive areas by the middle of November. It was a great victory of the people.

Opportunities Lost

After the withdrawal of police camps, the people were in a victorious mood and the movement was spreading to new areas. An opportunity was found where the awakened masses could be mobilized to establish organs of self-rule on the basis of democratic principles. Just six months previously the Panchayat election was held in the area. The CPI(M) had lost Lalgarh Panchayat Samiti (block Panchayat) and most of the Gram-Panchayats in Lalgarh. Different factions of the Jharkhand Party had own. Now, there was an opportunity to activate the Panchayats and to exercise control over them through the Gram-Sansads (a statutory body where every voter is a member) and to demand more financial and administrative powers in the hands of the Panchayats (like some power of control over the police and the administration of forests, village-level planning and their execution, the running of the NREGA, authority to issue BPL cards, etc.). Such measures would strengthen democracy at the village-level and prepare the ground for the masses to demand self-rule and autonomy.

But the Maoists operating in the area had a different plan. They wanted to utilize the uprising to create an area where the rule of the Maoist Party and their squads would be established, an area where there would be no opposition, not even any differing voice. So they tried to abolish all other parties and social organizations from the Belpahari and the Lalgarh blocks. The differences with the Majhi Marwah was objectively not such as could not be resolved within a democratic framework. This association of “Majhis” had no landlords or even rich peasants among them. When the CPI(M) had tried to impose its one-party rule in nearby Jamboni few years back, the Majhis played an important role in mobilizing the masses in their fight for democracy. But the Maoists wanted to abolish all social and political organizations which would not abide by their dictates.

The PCPA led by the Maoists issued a leaflet announcing the trial of Nityananda Hembrom, the head of the Majhi Marwah in a “people’s court.” They did not stop at that. They issued orders that everybody living in the area of influence of the Majhi Marwah would have to join processions called by them. Some people under the influence of Majhi Marwah defied this order. Many of them were beaten and some were killed. The murder of Sudhir Mandi in the last week of November by the Maoists created a major split among the masses. Sri Sudhir Mandi was the Chairman of Belpahari Panchayat Samiti in 2003-08. He belonged to the Jharkhand Party. He was a poor peasant having one acre of Dahi (infertile highland). Even after remaining Chairman of Panchayat Samiti for five years, he lived in his traditional mud-house with thatched roof. On the day of his murder, he had gone to the market to sell Sabui grass, a grass used for rope making and gathered only by the very poor. But to the Maoists, he was a class-enemy. A poor tribal is a class-enemy simply because he refused to carry out their order.

The Panchayat election was held in June 2008. Earlier Panchayats had failed because they functioned bureaucratically. A democratic functioning of the Panchayats was possible now with the supervision of the awakened masses. But the Maoists have no respect for democratic processes or democratically elected Panchayats. They beat up the Panchayat members and stopped them from functioning according to their mandate. They set up “people’s committees” with people loyal to them. In many villages, this loyalty was extracted by coercion. To them, these “people’s committees” were the organs of people’s rule in the area and had been given the power to impose any amount of tax and punishment through beatings or murder. The “accused” had nowhere to go for a hearing or an appeal. An Anganwadi worker earning Rs. 1,500 per month had to pay a tax of Rs. 500, a schoolteacher had to pay Rs. 5,000, a small brick-kiln owner Rs. 25,000, etc.

For seven months, there was no police in the area. During the period before the Lok Sabha election, the CPI(M) government was so frightened by the memories of Nandigram that they withdrew all administration in the area and left it to the PCPA. After the withdrawal of the state, the armed squads of the Maoists were the only armed forces in the area. Of course, there were CPI(M) squads in nearby areas. During the Lok Sabha election, the people in the CPI(M)-dominated areas were forced to vote for the CPI(M) while in the Maoist-dominated areas the people were not allowed to come to the polling booths. Thus there was “vote boycott” in nearly 75 booths with approximately 50,000 voters. The CPI(M) won the Jhargram Lok Sabha seat with a margin of nearly three lakh votes, the highest margin in the State. In the State as a whole, the CPI(M) lost heavily to the Congress-Trinamul combine and was totally in the doldrums. In many areas, the people living under the rule of CPI(M) thugs availed of this opportunity and raised the banner of revolt. It happened in Khejuri and many other areas in East Midnapur.

In the Lalgarh block, Dharampur Gram Panchayat was under the control of the CPI(M). During the Panchayat election, no other political party was allowed to set up a candidate. Even after the November uprising, this area was under the control of the CPI(M). The CPI(M) was actually using Dharampur as a base to attack people’s movements. Anuj Pandey, the notorious leader of the CPI(M) in Dharampur enjoyed the protection of his armed squads and the state police. After the Lok Sabha election, there was a popular revolt in Dharampur which was aided by the Maoist squads. Anuj Pandey fled to Midnapur town and his house was burnt and smashed. After this success, the Maoists openly held public meetings and press conferences in Lalgarh announcing the area as a liberated zone. Making the PCPA irrelevant, they announced that they were leading the whole movement. They would mobilize thousands of tribal men and women to resist the police, they announced.

The Indian state was waiting for this opportunity. Buddhadeb Bhattacharya, the Chief Minister of West Bengal, abandoned all his federalist and Left pretensions and prayed to Chidambaram to send central forces. The Indian state readily agreed with the condition that the Maoist Party would be banned. The Chief Minister of West Bengal accepted the condition (though some Left Front partners objected) and Centre-State joint operations started in Lalgarh.

In the face of this joint operation, the Maoists tried their best to mobilize the people for a mass resistance. It was expected by many well-wishers that the tribal men and women with their traditional bows and arrows would resist the police. It was being claimed that the paramilitary forces would have to proceed to Lalgarh over mountains of corpses. But nothing like that happened. On the first day, the Maoists mobilized some people for a mass resistance. The police fired some tear-gas shells and lathicharged them to remove the blockade. Subsequently, the police and paramilitary forces reached Kantapahari, the capital of Maoist rule in Lalgarh for six months, without any mass resistance. The squads placed some landmines here and there but they were in no way an effective deterrent to the paramilitary forces.

Now the paramilitary forces are setting up camps in Lalgarh and Belpahari. The State government is sending high-level committees to promote the “development” of Lalgarh. How far the paramilitary forces will succeed in “sanitizing” the area or the government succeed in promoting development is to be seen. But one thing is certain. The uprising has been suppressed. The state had to withdraw in November 2008. In June 2009, it reasserted itself. This is a defeat for the uprising.

Whether the defeat is temporary and how and when the people will rise again in mass movements depends on many factors. But people interested in the revolutionary transformation of our society must analyze the movement and draw proper lessons.

The movement was powerful enough to force the state to withdraw in November 2008 because (i) all the democratic forces in the region participated in the movement and a very strong people’s unity was forged, and (ii) there was division in the enemy camp with the contradictions between the Centre and State and between the Trinamul and the CPI(M) playing their role.

By March 2009, the situation was fast changing. The coercion on the people for “collection” and forcible participation in processions, suppression of all opposition by beatings, garlanding with shoes and killings were destroying the democratic content of the movement. The uprising was losing its internal strength. Then the squads resorted to more coercion and terror to show their “support” to the outside world. It reached its peak during the Lok Sabha election when the squads with guns went from village to village telling the people that they would be punished if they would go to the polling booths to vote. On the polling day, a landmine was blasted to kill some polling personnel. All these activities further alienated the masses.

When the joint armed forces started their campaign, only the advanced sections and cadres were ready for some resistance with landmines. The people decided to flee their villages and take shelter in the surrounding villages in Jhargram and Bankura. While the people’s democratic unity was disrupted, the ruling classes bridged some of their differences. The Central government offered all help to the State government in its fight against the “Maoists”.

Apart from tactical mistakes and mistakes on the question of united front, the Maoists hold a grossly wrong understanding of the nature of people’s power. They hold that absolute power in the hands of their party is equivalent to people’s power. They want a system where there will be no election on the basis of universal suffrage and no opposition party. “People’s Committees” would be formed with people loyal to them and they would decide everything. They tried to use the favourable situation in Lalgarh to start an experiment in political power on a miniature scale. So they imposed their “144” against all other political and social organizations in the area of their control. They did not allow a campaign car of the CPI(ML)-New Democracy, with a red flag hoisted on it, to pass through the area. The car was allowed to leave only after the red flag was pulled down. Same was the fate of a vehicle carrying a flag of the Jharkhand Party (Aditya).

In Lalgarh, the people’s uprising combined with the isolation of the CPI(M) forced the state to withdraw for some six months and the Maoists got an opportunity to practice what they understand as people’s rule. It is to be noted that they did not raise any class-issue or the issue of the people’s rights over the forests. They simply identified activists and supporters of other political parties as “class enemies” and killed them. These are the basic reasons for the failure of the movement.

The people of Lalgarh and the whole of Paschimanchal will certainly learn from the experiences of the uprising and rebuild their struggle for “Self Rule”, an aspiration which expressed itself during the Jharkhand movement and more explicitly during the November uprising. This will be a self rule where organs of political power will be elected by the people on the basis of universal suffrage and where these organs will seize all economic and political powers. They will certainly smash the limitations imposed by bourgeois dictatorship on the democratic aspirations of the people. But neither the people of Lalgarh nor the people of India will ever accept the one-party rule of any political party.

The Congress Manifesto and the UPA’s Common Minimum Programme, followed by repeated assurances by the Prime Minister to the minorities for a fair and generous deal have crystallized over the last three years in the PM’s New 15 Point Programme for the Welfare of the Minorities, followed by the Sachar and Mishra Reports. Their historic and practical importance cannot be overhauled.

The Sachar Report concludes on the basis of scientific analysis of all available data on the Muslim community that it is nearly as backward as a community as the SC/ST and more backward than Hindu OBCs. But, for some reason, it did not make the logical recommendation that the Muslim community should be recognized as a Backward Class in terms of Article 15 (4) of the Constitution and included in the list of OBCs with a sub-quota of its own.

This omission has been thankfully undone by the Ranganath Mishra Commission, which has recognized the Muslim community as a Backward Class and proposed 15 per cent for the minorities, out of which 10 per cent exclusively for the Muslims.

Ever since reservation for the Muslims came on the political radar in the 90’s there has been intensive effort by hostile force on various fronts to torpedo the idea. A major strategy has been to misguide, mislead, divide and demoralize the Muslim community on various spurious grounds. Even some intellectuals have joined the game of Muslim-bashing.

Religion & Caste On Par

On the political plane, parties and politicians with a few honourable exceptions have repeatedly suggested that there can be no religion-based reservation. But this view is erroneous. Article 15 (1) treats religion and caste on par with each other. The word ‘only’ in the Article is very significant. Read with 15(4), there can be no reservation only on the basis of caste or religion. For all practical purposes, reservation has been caste-based on presumption of inherent backwardness. So, a religions group, at least when found to be a Backward Class by a competent authority on the basis of common parameters, is equally eligible.

Article 15 (4) speaks neither of religion nor caste but of Backward Class. Provision of reservation to a religious group is therefore a matter of policy, not of law. The Supreme Court in Indira-Sawhney judgment endorses this view. So does the Venkatachalliah Commission. And above all, Karnataka and Kerala are living examples of reservation for the Muslim community.

Secondly, the Muslims are told that the Government service is contracting and diminishing on the whole and that they have come late. But so far no Backward Class has disowned reservation.

Thirdly, the Muslims are told that they do not send their children to school because they do not want Government jobs. This is absurd. Everybody wants a Government job howsoever low, not only for income but for social prestige. Thus, every Muslim sends his children to school, if it is available, or wants to.

Fourthly, the Muslims are told that reservation is a crutch and having ‘ruled’ the country for centuries, they should not seek a crutch, thus raising a question of false dignity. The fact is that reservation is not a charity but a normal, universally applied mechanism for uplifting a backward group which forms a part of a multi-group society, just as a sick child in a family needs more attention.

‘Hindu Backlash’

Finally, the Muslims are warned and cautioned against provoking a ‘Hindu backlash’, which may take the form of violence, even massacre. But this is absurd because the Muslims are not asking for the moon or anything special or more than their due. And, Hindus masses believe in justice.

Democracy implies equitable representation of all social groups in proportion to their population in governance & administration, legislature, education, benefits of development and access to capital. Democracy remains incomplete and the secular State becomes a formality without fair and just representation of all religions (and caste groups) in the power structure. It may be recalled that the fathers of the Constitution had included a provision for reservation for Muslims in the Draft Constitution. This was, however, dropped during the third reading by what can only be described as a deliberate subterfuge.

Since the SC/ST receive 100 per cent weightage for their population, even without a detailed determination of their level of backwardness, the Muslims who form 13.4 per cent are entitled to a sub-quota based on 90 per cent weightage given the Sachar Report. This means it should have a quota of 13.4 x 90/100 i.e., 12 per cent.

Then, a question is raised that the Supreme Court has capped reservation at 50 per cent and if the Muslims are given a separate quota of 12 per cent, the limit would be exceeded. Since the number of Backward Classes in the country and their levels of backwardness vary from State of State, there cannot logically be a common limit for all the States for all times. The OBC quota will go down at least to some extent and the excess over the 50 per cent limit will not be 12 per cent.

Illogical & Unrealistic Limit

Some states of Muslim concentration like Assam, Andhra Pradesh and West Bengal have not even touched the 50 per cent limit. So, the Muslim quota can easily be adjusted partly or wholly against the unutilized balance. Sooner than later, the Supreme Court will have to abolish this illogical and unrealistic limit and make it variable from state to state (and for the Centre), according to the total of the sub-quotas of various eligible Backward Classes, as well as from census to census according to the progress received by various Backward Classes.

The next question raised is whether there can be a separate sub-quota for the Muslim community. The Supreme Court has permitted categorization of OBCs.

Then to divide the community a highly emotional question is raised: If there is a common sub-quota for the Muslims as a whole, the existing Muslims OBCs will be ousted and their place taken by the so-called Ashraf. There are many answers to this question.

No such displacement can occur, if all reservation is subject to the exclusion of the creamy layer and the creamy layer is defined in a reasonable and realistic manner e.g., twice or thrice the average family income of the nation or the state.

The second safeguard is offered by the resolution adopted by the National Conference on Muslim Reservation that the candidates from the existing Muslim OBCs i.e. the notified baradaries should enjoy preference and priority and have first claim on the Muslim sub-quota.

Thus, the theoretical picture is absolutely clear that reservation for the Muslim community is not only necessary and desirable but viable and beneficial for the community as well as the country. What is holding it up is hostility and bias which has reduced the Muslims during 60 years of Iindependence to the present status of backwardness, comparable to the SC/ST.

Deprivation in Every Field

The Muslim community itself, which stands divided and demoralized, wakes up only when a massacre or sacrilege occurs; it has taken deprivation in every field over the years as normal. Individuals may endeavour to exert pressure but the community, as a whole, listens to speeches and its ‘leaders’ and submits memoranda to the power structure. But it has never organized any effective agitation at the town, district, state capital or national capital level to press for an overall programme of uplift. It has not even sought to convince progressive forces to take up its cause.

The Sachar Report has served a historic purpose not only to set Muslims thinking but also encourage secular political parties to raise their voice in support of the legitimate aspirations of the community.

Aspirations of the Muslims stand crystallized in the form of a Charter of Demands, distilled by the Joint Committee of Muslim Organizations for Empowerment (JCMOE) from the PM’s Programme and the Sachar and Mishra Reports. Its crux is the recognition of the Muslim community as a Backward class, its inclusion in the OBC list with a separate sub-quota of 12 per cent for reservation in public employment, higher education, benefits of all development schemes targeted for individual beneficiaries and flow of bank credit, and the formulation of a Muslim sub-plan on the pattern of those for SC/ST and the inclusion of Dalit Muslims in the SC list.

The community is at a loss to comprehend the insensitivity and reluctance of the power structure towards these logical and basic demands. Will it act only when the community musters the courage and confidence to emerge out of its slums into the streets? ---INFA

Chapter XII

CHAPTER XII

PUBLIC DISTRIBUTION SYSTEM

12.1 The objective of the Government Food Security Policy is to ensure availability of foodgrains to the public at an affordable price. The Public Distribution System (PDS) has, over the years, become an important instrument of Government's policy for regulating the open market prices of essential commodities and for ensuring food security at the household level.

12.2 Under the PDS the Central Government has assumed responsibility for procurement and supply of essential commodities, viz. wheat, rice, levy sugar, imported edible oils, kerosene and soft coke to the State Governments and the Union Territories for distribution at almost uniform and affordable prices to the public. These commodities are made available to the States/UTs at fixed Central Issue Prices (CIP) which are determined by the Central Government and generally involve subsidies borne by the Central Government. Some States/UTs also distribute additional items of mass consumption through the PDS outlets.

Centre State Coordination

12.3 The implementation of the PDS is the joint responsibility of the Central Government and the State Governments/UT Administrations. The Central Government is responsible for procuring the commodities, storing and transporting the PDS items uptown the Central Godowns and making them available to the State. The responsibility for actual distribution to consumers and administration of the PDS is entirely that of the State Governments and UT Administrations.

12.4 A Committee on Allocation has been constituted under the Chairmanship of Secretary, Deptt. of Consumer Affairs and Public Distribution System to consider and finalise allocation of PDS commodities to States/UTs monthwise. Secretaries in the Ministries of Food, Coal and Petroleum and Natural Gas are members of the Committee.

12.5 The State-wise allocation and lifting of rice, and wheat (from FCI), sugar, imported edible oils and kerosene under the Public Distribution System during the years 199596 and 1996-97 are at Annexure-I. The position of off-take of' wheat and rice for the last ten years are given in the Graphs 1 and 11. The per capita availability of rice and wheat through local production and through PDS is given in Annexure-11-A, II- B, & II-C.

Distribution Network

12.6 The network of fair price shops has been expanding over the years. Uptown 1-1-1997, 1779 lakhs ration cards have been issued by States/UT Administrations to cover the entire population of the country. Different States have issued different types of card like white card, green card, saffron card, etc to provide concessional foodgrains. State-wise .population 199 1, number of households, number of ration cards and number of fair price shops are given in Annexure-III.

12.7 Increased emphasis has been laid in the past few years on improving the reach of the PDS to remote, far-flung and inaccessible areas. Mobile fair price shops/vans are pressed into service in these areas. So far funds for purchase of 1209 vehicles have been sanctioned to various States/UTs. State-wise position of vans/trucks sanctioned to States and UT& uptown 15-2-97 are at Annexure-VIII.

Pricing of Commodities under PDS

12.8 PDS commodities are issued to all states/Union Territories at uniform Central Issue Prices (CIP) which generally involve subsidies borne by the Central Government. The Central Issue Prices of foodgrains are fixed by the Ministry of Food after taking into account the Minimum Support Price of foodgrains, statutory charges/taxes payable on the Minimum Support Prices and interest charges -at the prescribed rate of interest. The growth of minimum support price of rice and wheat during the last ten years are indicated in the Graphs III to VI. The Central Issue Prices of foodgrains for RPDS areas is Rs.50 per quintal lower than the Central Issue Prices of foodgrains for normal public distribution system areas. In the case of other items like sugar, kerosene, soft coke and imported edible oils, the cost of procurement/ production, margins to dealers, transportation incidentals, etc are included as the case may be, while working out the Central Issue Prices.

12.9 The Central Government supplies PDS items in bulk to the State Governments/UT Administrations for distribution through the Public Distribution System. The State Gov- ernments/UT Administrations fix the end retail prices them- selves after taking into account margins for wholesalers/re- tailers, transportation charges, levies, local taxes etc. which may vary from item to item in various States/UTs. The States/ UTs have been advised not to add more than 25 paise per kg. over the CIP for RPDS areas while fixing the end retail prices. However, in the case of sugar the end retail prices of levy sugar supplied through PDS in all States/UTs is fixed by the Ministry of Food and it is Rs. 10.50 per kg. at present. The growth of Central Issue Price of PDS commodities are indicated in graphs VII to X. Fair Price Shop level prices of food grains in various States/UTs is given at Annexure-IV-A & IV-B. The scale of issue of essential commodities in various States/UTs are given in Annexure-V-A and V-B.

The Revamped Public Distribution System

12.10 The Government has been giving importance to strengthen and streamline PDS to improve its reach to farflung, hilly, remote and inaccessible areas where a substantial section of the poor live, The Programme of Revamped PDS was launched by the Prime Minister on 1st January, 1992 in about 1700 blocks covered by areas specific programmes such as Drought Prone Area Programme (DPAP), Integrated Tribal Development Projects (ITDP), Desert Development Programme (DDP) and certain Designated Hill Areas (DHA) identified in consultation with State Governments for special focus for improvement of the PDS infrastructure. The programme of action under the RPDS included:-

(i) The area approach for ensuring effective reach of the PDS commodities especially to these areas.

(ii) Delivery of PDS commodities by the State Government at the doorsteps of fair price shops in the identified areas wherever feasible.

(iii) Additional ration cards to be issued in the identi- fied areas to families who have not been issued family card so far. Simultaneously, efforts to be made to eliminate bogus units/cards in the entire State/UT especially in the urban areas.

(iv) Infrastructure requirements such as additional fair price shops and additional storage capacity to be met in the identified areas.

(v) Additional commodities such as tea, salt, pulses, soap etc.to be included for distribution using PDS outlets, subject to local needs and availability.

12.11 The progress in the implementation of points of action as reported by the States/UTs till 15.02.1997 against targets fixed are as under:-

---------------------------------------------------------------TargetProposedAchieved---------------------------------------------------------------(a)Additional fair price shops1058018792opened(b)Additional ration cards issued26758989670172(c)Bogus cards eliminated-4419452(d)Storage capacity in413400451311(MTS)(Hired)87460(Created)(e)Total number of fair price shops103295in identified areas.(f)FPSs covered under doorstep delivery system52932(g) All States/UTs have reported the setting up of VigilanceCommittees comprising local people at the fair price shop andother levels.(h) Several States have introduced additional items like,soaps, pulses, exercise books, salt, tea, match boxes etc. fordistribution through fair price shops.---------------------------------------------------------------Streamlining the PDS with its Focus on the Poor

12.12 The Common Minimum Programme (CMP) of the United Front government stresses the need for streamlining the PDS with the objective of improving the basic minimum services. 'Public Distribution System'(PDS) is one of the services which is sought to be streamlined as follows:-

i) Foodgrains shall be sold to the families below poverty line (BPL) at specially subsidised prices;

ii) PDS need not cater to the affluent sections of society;

iii) The management of PDS shops to be entrusted to elected Panchayats and Nagar Palikas.

12.13 The issue of streamlining the PDS with its focus on the poor was discussed in the conference of Chief Ministers on Basic Minimum Services held during 4-5 July, 1996. While welcoming the proposals for targeted PDS the Conference felt that measures should be taken to ensure availability of essential commodities also for the population above the poverty line who are at present getting the benefit of the PDS. The Conference suggested that the States should be consulted before finalising the BPL population. It was also felt that the actual running of FPS by the elected Panchayats/ Nagar Palikas need not be insisted upon but supervision and monitoring of FPS can be entrusted to the Panchayats.

12.14 Keeping in view the suggestions of the Chief Min- isters, a Conference of State Food Ministers' was held on 7th Aug., 96 to discuss further the question of targetting the PDS. The Conference unanimously endorsed the proposals for targetting PDS especially the provisions of subsidised foodgrains to the population below poverty line and recommended that the Central Govt. may bring in this targetted PDS into force as soon as possible. It was further added that State Governments/UT Administrations will identify the BPL population as per the latest population figures and issue special cards to BPL population, that allocation of foodgrains for non-poor shall continue and Central Issue Prices at which foodgrains will be issued to non-poor may be increased gradually to bring the CIP at par with economic level, that requirements of hill States, border States, States with inaccessible areas, food deficit States have to be considered on special basis for allocation of adequate foodgrains taking into account their problems and that margins between CIP and end retail price for distribution of foodgrains has to be fixed keeping in view the ground realities by the respective State Governments.

12.15 The Hon'ble Prime Minister in his Independence Day address to the Nation on 15th August,1996 announced that 10 kg. of foodgrains will be provided every month to the poor families at half the normal price. The scheme is to benefit about 32 crores of people.

12.16 The Hon'ble Prime Minister has made a statement in the Lok Sabha on 24th February, 1997 on introduction of Targetted Public Distribution System (TPDS) in the country. The main components of the scheme are as under:-

(i) A quantity of 10Kgs. of foodgrains per family, per month will be issued on the basis of number of families Below Poverty Line (BPL) in the State as indicated in Annexure-VI. This quantity will be issued as Rice or Wheat or combination of both, as may be preferred by the States at prices less than the Central Issue Price (CIP).

(ii) Further, as recommended by the Conference of Chief Ministrers, the average lifting of foodgrains for the last IO years by the States is proposed to be continued for the benefit of the population Above the Poverty Line (APL) (Annexure-VII) at present getting the benefit of the Public Distribution System. The quantity of foodgrains out of this average lifting which is in excess of the requirement of the population Below Poverty Line (BPL), is proposed to be allocated to States as a transitory allocation, at the Central Issue Prices.

(iii) While the allocation of 10 kg. per month, per family. for the population Below Poverty Line will be on enutlement basis and will be guaranteed to States by the Centre, the allotment for non-poor will be on the basis of local production in the State and availability of foodgrains in the Central Pool. While deciding the allotment, the special problem of hill States, States with inaccessible areas where regular markets do not function, and highly deficit States, will be kept in mind.

(iv) In so far as rice is concerned, common varieties of rice will be reserved exclusively for the population Below Poverty Line which will be issued Common or Fine rice at the same price. Fine and superfine varieties of rice will be issued to the population Above Poverty Line.

(v) The States should fix the price at FPS level at not more than 50 paise/kg. over the Central Issue Price particularly for the population Below Poverty Line.

(vi) States will be free to add to the quantum, coverage and subsidy from their own resources. Government of India's commitment will be:

(a) To provide 10 Kg. of foodgrains per family, per month at about -half the C.I.P. for the below Poverty Line families to States;

(b) The quantiy needed for the beneficiaries of Employment Assurnace Scheme/Jawahar Rozgar Yojana at the same rate; and

(c) The additional quantity indicated for. the Above Poverty Line families at full C.I.P. as indicated in para (iii) above.

(vii) State Governments would be encouraged to undertake procurement of coarse grains for issue to population Below Poverty Line and the subsidies given by Central Government wold be extended to this local procurement of coarse grains. This will be within the overall quantity indicated as entitlement on the basis of population Below Poverty Line.

(viii) The State Governments would need to make all arrangements to ensure that the eligible families are identified, cards are given and the Scheme is implemented properly. Under no circumstances would subsidised foodgrains be given, unless these arrangements are made satisfactorily. This arrangements among others will include:

(a) Proper enumeration of the families Below Poverty Line and issue of special cards to them.

(b) Administrative, financial and delivery arrangements required to ensure that the allotted foodgrains, indeed, reach the Fair Price Shops and from there to the intended benefi- ciaries without any diversion.

(c) A proper system of monitoring and reporting in the pescribed formats on the working of TPDS together with constitution of Vigilance Committees at the shop, district and state level.

The States will be entitled to subsidised foodgrains, only if these conditions are complied with. The arrangements should be agreeable to both the States and the Centre.

(ix) The Central Issue Price will come into force as and when announced by the Department of Food Procurement and Distribution. Issue of foodgrains at subsidised prices, less than the Central Issue Prices to the States for the Below Poverty Line population will be effected as soon as a State has completed the arrangements indicated in para (viii) above. With the introduction of the targetted PDS, the existing PDS will be no longer relevant. However, in the matter of provisions of vans and godowns under the Ministry's Scheme emphasis will be on these areas.

(x) The specially subsidised foodgrains will also be issued to all beneficiaries under the EAS/Jawahar Rozgar Yojana, at the rate of I Kg. per manday on the basis of Guidelines already issued in this regard by the Department of Rural Employment & Poverty Alleviation.

(xi) 'Food Coupons' should be issued for the beneficiaries under EAS/Jawahar Rozgar Yojana enabling the beneficiaries to obtain foodgrains at the Fair Price Shops by exchanging the Food Stamp Coupons.

Scheme of Financial Assistance to States for Purchase of Mobile Vans/Trucks

12.17 The scheme is intended to provide financial assist- ance to State Governments/UT Administrations for purchase of mobile vans/trucks for distributing essential commodities in rural/hilly/remote and other disadvantaged areas where static/regular fair price shops are not found viable/feasible. Initially an assistance of Rs.2.50 lakhs was being provided for a delivery van/truck with 75% loan and 25% subsidy. With the liberalisation of the scheme during 1992-93 the subsidy component of the assistance was enhanced from 25% to 50% and the financial assistance per van/truck was also raised to Rs.4 lakhs in the case of delivery van (for 4 tonner) and Rs.8 lakhs for big truck ranging from 8 - 10 tonnes and above subject to the ceiling of actual cost whichever is lower.

12.18 Under this scheme vehicles can be used not only as mobile fair price shops but also can also be used for effecting Door Delivery of PDS commodities to fair price shops in RPDS areas. The scheme is supplementary in nature as the running cost and its maintenance etc. are borne by the respective State Governments from their own budget.

12.19 Since the inception of the scheme in 1985-86 uptown 15.2.97 a total financial assistance of Rs.43.99 crores has been provided to 26 States and UTs. for purchase of 1209 vans/trucks. State-wise position of funds sanctioned to States/ UTs is indicated in the statement at Annexure-VIII. Funds under the scheme are released on the basis of past utilisation submitted by the State Governments.

Scheme -of Financial Assistance to States/UTs for Construction of Godowns

12.20 The scheme is intended to assist the State Govts./ UTs for construction of small godowns of the capacity of uptown 2000 MTs in interior areas where it is necessary to maintain adequate stocks to ensure regular supplies under PDS. Since 1983-84 this scheme was being implemented to supplement resources of State Governments to augment storage capacity in remote/inaccessible/hilly areas. Till 1991 the scheme was restricted to North Eastern States, Himachal Pradesh, Sikkim, Jammu & Kashmir, Lakshadweep and Andaman & Nicobar Islands. With the launching of RPDS in January, 1992 the scheme was further extended to cover all the identified RPDS areas. Funds under the scheme are released for small godowns where Central agencies like CWC, FCI etc.do not operate. The present pattern of financial assistance is 50% loan and 50% subsidy. However, in case of UTs without legislatures the entire assistance is in the form of subsidy only.

12.21 Since the inception of the scheme in 1983-84 uptown 15.2.97 financial assistance to the extent of Rs.34.29 crores have been sanctioned for construction of 447 godowns for raising the additional storage capacity of 168019 MTs in 24 States and UTs. State wise position of funds sanctioned under the scheme is given at Annexure-IX. Funds under the scheme are released on the basis of utilisation certificates submitted by the State Government for the assistance given to them in previous year.

12.22 In order to strengthen and upgrade the skills of personnel engaged in the PDS and to improve its management, the Ministry operates a Plan Scheme for providing financial assistance to State Governments/UT Administrations for training their personnel. The scheme, namely, 'Intelligence, Enforcement and Manpower Training for Public Distribution System' was included in the 6th and 7th Five Year Plans and is being continued in the 8th Five Year Plan. The outlay for the year 96-97 for this scheme is Rs. 20.00 lakhs. The following components have been included for financial assistance in the Scheme:

(i) Training programmes for junior and middle level officials of the State Governments/UT Administrations engaged in supply management of essential commodities through PDS.

12.23 In the past seven research studies have been conducted. A study on the 'Structure of foodgrains Prices in India' sanctioned to IIM, Bangalore in February, 1995 has been completed.

Monitoring and Inspection

12.24 Public Distribution System being an area of Joint Responsibility between the Central and State Governments/ UT Administrations, the need for constant interactions between them is essential to obtain systematic feedback for regular monitoring of the system. During the year, meetings were held with State Ministers and officials to review the functioning of the PDS, particularly the implementation of the revamped PDS in different States and UTs. The interaction between the Centre and States has played useful role in the coordination of activities and formulation of policies.

Scheme for SC/ST/OBC Students

12.25 The Central Government has issued instructions in October,94 to all the Chief Ministers of State Governments/ UT Administrations to supply foodgrains to SC/ST/OBC student hostels at specially subsidised Central Issue Prices as applicable to areas under the Revamped Public Distribution System. The decision has been taken in order to ensure adequate standards of Nutrition in institutions for the welfare and development of the weaker sections. The Scheme was announced by the Prime Minister in his Independence Day' address on 15.08.94.

12.26 The scheme cover all hostels, whether public or private in which at least 2/3rds of the resident students belong to SC/ST/0BCs. Foodgrains are supplied to all the resident students in such hostels including those belonging to other categories. The scale of supply is 15kgs per student per month in any proportion of wheat and rice as per local requirements.

Price Monitoring Cell

12.27 The wholesale and retail prices of selected essential commodities are collected from 37 centers scattered all over the country every week and a weekly price bulletin is compiled there from. Through the information compiled, a close watch is kept on the price situation, allowing timely intervention wherever necessary.

NICNET

12.28 Gradual modernisation and streamlining of the Management Information System is underway through the operation of NICNET and increased computerisation of data. With the availability of this facility, the Ministry is presently engaged in:--

(i) Computerised presentation of price bulletin.

(ii) Collection of prices data from States through NICMAIL facility for preparation of weekly report on prices.

12.29 To give a further boost to the on-going process of modernising the Information Management System, the facilities of the NIC, specifically for the use of this Ministry have been provided at Shastri Bhavan, New Delhi.

12.30 In order to facilitate the flow and exchange on information between districts, State and the Centre, it is proposed to expand the existing NIC network (NICNET) to the offices of the Civil Supplies Department at the State Headquarters and also to the District Offices.

Major Kaleelur Rahman distributing prizes at the valedictory function held on March 19, 1999 to the participants of six week "Spoken English Language Course" conducted by Centre for Objective Studies" at Darrussalam for the fresh graduates who passed from Sabeelur Rashad, Arabic College, and 14 students completed the course. The course was developed and conducted by Dr. Shaukat Ali, of Bangalore University.

The message on the hoarding was put up by the Canara Bank, a Government of India undertaking at its head office on J.C. Road in Bangalore on the eve of Ugadi and Idul Azha, two festivals observed by important communities. The ofending message sent representatives of several communities into action. The hoarding was removed after wiser counsels reesatablished their sway. People were left wondering if banks were the right purveyors of the message, given their role as the custodians of people's money.

By Mozaffar Islam, Calcutta

CALCUTTA: After saffron, it is now the turn of the red West Bengal to deploy intelligence agencies to carry out a detailed survey of mosques, madrassas and Muslim institutions. The intelligence branch of the state police in cooperation with the local police stations launched an intensive survey of Muslim institutions in January. The intelligence outfits have been asking, searching questions about the key person behind the institutions. It has caused widespread resentment among Muslims who apprehend that the statistics would be used to demonise the community and kick up hatred against Muslims in a state that has remained free from communal virus during the Marxist rule.

The survey has been carried out mainly in the border districts of Malda, Nadia, Murshidabad and also in Hoogly district. Questions are also being asked about the Muslim NGOs that “are receiving foreign funds to run the madrassas”. In 24-Paragana district, the IB had been seeking details about the institutions that are funded by the Islamic Development Bank (IDB). In Murshidabad district, the imams are asked whether they had visited Makkah and Bangladesh, performed hajj, or visited other Muslim countries.

According to sources, there are nearly 1,050 mosques in districts along the border of Bangladesh.

The IB has also undertaken a demographic survey of the Indo-Nepal border indicating that a large number of new Muslim settlements came up on the West Bengal-Bihar border. According to sources, even the Border Security Forces had carried out a similar survey. According to this survey, over 100 new madrassas were constructed in Calcutta, Krishnagar and Malda sectors in seven years time (1992-99). During the period the number of mosques also rose to 200.

The West Bengal Madrassa Board has confirmed that state intelligence officers had approached them for a census of Muslim educational institutions, the board was also informed that the survey was being conducted at the directive of the Central government.

Congress MLA Sultan Ahmed has condemned the “census” as a tool of oppression and asked the West Bengal Chief Minister Jyoti Basu to immediately stop the operations. Forward Bloc leader and deputy speaker of West Bengal Assembly has said there was no question of receiving foreign money and all madrassas were run through zakath charities, which Muslims set apart every year by way of 2.5 per cent of their accumulated wealth.

However, Jyoti Basu has assured the Minorities Commission chairman Tahir Mahmood, that there would be no census of Muslim educational institutions in a letter in response to Dr. Mahmood’s missive earlier last month.

BANGALORE: Dr. Zakir Hussain Forum for Agriculture Development was set up here on March 20 in order to promote awareness about farm sciences and allied subjects among Muslim students. The Forum would provide counselling in PUC colleges, explain prospects and arrange scholarships etc for the Muslim students.

Concern was expressed over meagre representation of Muslims in Agriculture and allied science courses by Muslim staff members of the University of Agricultural Sciences, Bangalore (UAS), social workers and educationists. It was pointed out that of the 3,500 students in the 10 courses being taught at the University here, only 63 were Muslims which accounts for less than two per cent.

Setting the tone for the effort, Dr. Taj Shoukath, member of the Board of Regents of the UAS, said the Muslim students were ignoring the farm and allied sciences in pursuit of courses that carry more glamour, money and prospects of job abroad. She said over half a dozen foundations in Bangalore were providing scholarships etc. Dr. S A Rahman, Director of Instructions, UAS, said during the last 10 years, not a single Muslim student figured in merit list of admission in the University. All Muslims found admission through OBC or Muslim quota. Prof. M. M. Khan explained the admission procedure. Prof. Mir Qamar Ali talked about reservation system. Prof Nazeer Ahmed Khan said the prospects for jobs and self-employment had vastly expanded in agriculture and related fields. Mr. Maqbool Ahmed Siraj emphasized that the community should diversify its professional profile.

Presiding, K. Rahman Khan, MP, said Muslims should not blame the government for discrimination. He said those able among the community, were getting their due place in the society. Mr. Khan said agriculture was receiving the most favourable treatment from the government in matters of financing, electricity and other inputs and was a high yielding sector. He said Muslims should enter the sector in a big way.

Governor of Karnataka, Khurshed Alam Khan, has consented to be the chief patron of Dr. Zakir Hussain Forum for Agriculture Development.

K. Rahman Khan is the Chairperson. Dr. Taj Shoukath is the Hony Secretary. More information and career booklet on Agriculture can be had from: Forum for Agriculture Development, Al-Ameen Education complex, Devarajeevanahalli, Bangalore-45.

By A Staff Writer

BANGALORE: A working group has been formed here under the aegis of the Ahmedabad based Institute For Initiatives in Education (IFIE) to take up the work of education, health, communal harmony, employment and women’s empowerment. Mrs. Benazir Baig of the Raza Educational and Social Welfare Society has been nominated the convener. In its first meeting on March 21, the working group decided to concentrate on certain slums of Bangalore. In order to set the ball rolling, a team of workers visited the D. J. Halli Slums to take a look at the problems. The group would take up amelioration work in a portion of D. J. Halli slums, Khader shareef Gardens and Koramangala slums.

In a seminar on “Muslims and Communalism” under the auspices of IFIE at United Theological College at Bangalore on March 14, the participants decided to work on the five-point agenda and bring about awareness. Presiding at the seminar, IFIE Director, Hanif Lakdawala said the Institute’s work in Ahmedabad slums concentrated on education, health, women’s empowerment, employment for all and easy credit facilities had paid dividends. He said a baseline survey in Millatnagar colony with a population of 20,000 in the city had found that the infant mortality was 120 per 1,000 births, 38 neo-natal deaths, zero per cent immunisation and 68 per cent malnutrition. He said Sanchetana, a body under the IFIE, began working in the colony by training 10 girls as health workers and a clinic which prescribed only low-cost medicine. A survey conducted after some years revealed that malnutrition had decreased to 47 per cent. Maqbool Ahmed Siraj recounted the 22-point communal agenda of spreading myths about Muslims which created gulf between Hindus and Muslims. He said some of the myths were borne out of innocent misgivings about Islam, Muslims and Muslim history of India while others were the result of deliberate mischief. Maqsood Ali Khan, Editor, Salar Daily, said Muslims should not bother about the fabricated charges against Muslims. Among the speakers were Prof. Hassan Mansur, Lalitha, Amathur Rahman Rahmani, Mrs. Benazir Baig, Shabana Azam, Prof. Marulsiddappa, Bijoykumar, Jameela Nishath, Shahar Bano, Shrikar etc.

BANGALORE : According to the information received from the Director for Urdu and other minority languages, for the year 1999 - 2000, admissions are open for the 5th standard classes in the Muslim residential schools at Ramnagram (Bangalore Dvn), Srirangapatnam (Mysore Dvn), Gulbarga (Gulbarga Dvn), Bijapur (Bijapur Dvn). The parents of the children who have passed the 4th standard class are requested to get their childrens in these residential schools for whom the boarding and lodging would be free and would be given free education upto the 10th standard. Such students are eligible for admission whose parents income is Rs.11,000 per annum or less, or who have green cards.

Fifty students (25 boys and 25 girls) would be admitted in each school.Application can be had from the BEO of the divisions concerned from 10th to 15th April 1999, prescribed and duly fulfilled applications should be submitted on or before 25/4/1999. Application should be accompanied by income certificate, caste certificate and rural certificate. Eighty percent (80%) seats are reserved for rural applicants. If there are more than 50 applications for a school, admissions would be made on the basis of an entrance examination, which would be held on 10th May. Only students belonging to the particular division can apply for admission to the residential school of that division.

PUNE: The All India Advocates Association representing lawyers from the SC, ST, OBC and Minority communities will hold a conference at Pune in the month of May to discuss the difficulties faced by the advocates from the communities. It will also discuss the changes proposed in the Indian Constitution by various parties. In a press release from its sub-office at Pune, Vice President Baji Rao Kamble has said that the conference would take up the question of appointment of judges, legal advisors, reservation in judicial postings etc. The press release said the organisation had protested against the installation of statue of Manu in front of Rajasthan High Court. It said the organisation had requested the Chief Justice of India to order the removal of the statue. For more information contact: All India Advocates Association, 213, Than Singh Nagar, Anand parbat, New Delhi-110005.

BANGALORE : All India Milli Council, Karnataka will be holding a one day State convention here on April 11, 1999 at Darrussalam, Queens Road. In a press release by the Secretary General Moulana Mufti Ashraf Ali.

The convention will discussion the issues of minorities at the district level and the forth coming Assembly elections.

Status

Arunachal Pradesh

Stipend in lieu of ration is given to the APST hostel boarders. Free text books are supplied to APST girls up to class XII and boys up to VIII. Free uniform are supplied to students up to VIII depending on availability of funds. Education is free up to XII

Free text books to all children I-IV. Free uniforms, supply of school bags etc. are given to SC/ST girls in class V-VIII in Government school. Started pre-matric hostels and pre-matric scholarships for students of classes V-X

SC/ST girl students are provided dress grant and attendance scholarships. Pre-matric scholarships has been introduced for all SC/ST students from class VI-X

Uttar Pradesh

Students belonging to SC/ST/OBC are provided with free text books and all SC/ST/OBC/Handicaped/Miniority children are given scholarships at the beginning the session

West Bengal

Free uniform is provided to all students belonging to SC/ST categories

A & N Island

Incentives such as free books, note books, mid day meals, full attendance scholarships etc. are being provided to all Tribal students

Daman & Diu

Stipend, free uniform, free shoes, socks and free stationery are given to SC/ST students. Hostel and Ashram Shalas are run for SC/ST students

Pondicherry

Free hostel facility, food, clothing and accommodation to Sc students is provided. Training of cutting and tailoring to SC school drop outs with stipend of Rs. 100/- per month is given. Pre-matric scholarships is given to such students studying in VI to VIII, Rs. 150/- per annum and IX and C standard Rs. 200/- per annum. Free supply of text books, stationery, uniform cloth and reimbursement of the cost of medium text books to all SC students. Provision of tutorial facilities to Sc school students. Special assistance of Rs. 250/- to Sc girl students to undertake primary education from I to V. Grant of special incentive of Rs. 300/- is given to each Sc student who score 65% of marks and above in class X public examination.

Birbhum is one of the important districts of “RARH-REGION” in West Bengal where one-third of the total population of this district belongs to Minority Communities. The Department of Minorities’ Development & Welfare, Government of West Bengal constituted a District Level Committee for Minorities’ Welfare in ten Minority Concentrated District. Birbhum is one of them.

West Bengal Minorities’ Development & Finance Corporation has no infrastructure in the district and hence the District Level Committee has entrusted with function of screening, monitoring and evaluation of Self-Employment Programmes of the West Bengal i.e. Term Loan Scheme, Cluster Loan Scheme, Micro Credit Loan Scheme, Gas Oven Micro-credit Scheme etc. and Vocational Training Programme, Stipend for Meritorious Muslim students & Maulana Azad National Scholarship Scheme for Meritorious Girl students belonging to Minorities implemented by corporation.

We like to say that the performance of this district is much better than other districts and continues to be also encouraging to the other backward section of the notified minorities i.e. Muslims, Buddhists, Sikhs and Parsees with a view to promoting income generating activities amongst the un-employed youths of the target group for their economic upliftment.

The schemes have been widely spread all over the district and the consistent perseverance on the part of the district level committee as well as the grass root level workers including the Recovery Agents and Panchayat functionaries have been encouraging the people belonging to minority communities to come forward for availment of the benefit extended by the corporation. They have been developing their skill in various activities and taking every effort to stand on their own feet subscribing to loan installment almost regularly. They do not appear to have diverted the fund from the selected one. As the beneficiaries have every confidence on the selection as made by the head office of the corporation on the basis of the recommendation of the District Level Committee. This programme is getting popularity day by day amongst the people belonging to Minorities.

Dalits, Muslims & Sarva Shiksha Abhiyan

Interesting news which caught my eye on January 16th, 2010 was “Human Resource Department’s internal appraisals of ‘Sarva Shiksha Abhiyan’ showing most of its physical target’s for 2009-10 are set to be fully achieved.” – With 85% schools opened of set target, 78% teachers, 92% schools with drinking water, providing free textbooks to 92% school students.

‘Sarva Shiksha Abhiyan’ - “Education for All” scheme is sometimes referred to as “each one, teach one”. The aim of Sarva Shiksha Abhiyan is to provide useful and efficient elementary education to all children in the age group of 6 to 10 by 2010. There is also another goal to bridge the social, regional and gender gaps with the active participation of all the communities in the management of schools. Have these targets been achieved to some extent? Are all the governments working towards all these targets? Are all the children getting chance for betterment or this scheme has become one more government scheme which never reaches common people.

There are about 45% Dalits who don’t know how to read or write; literacy rate for Dalit women is just 37.8%. According to a survey by the Friends for Education, almost 52 % Muslims live below the poverty line (compared to 25 % of all Indians). Of every 100 Muslim girls admitted in schools at the primary level, only four pass out at high school while only 1 makes it to a college. The literacy level is a shocking 28% and graduates and postgraduates form less than 1 % of the total. In the field of medicine, the percentage is just 2.4 while in the judiciary it doesn’t go beyond 3.1 %. The community occupies the lowest rung in the development index. Its literacy rate is poor and it has a low presence in private and public sector jobs. (“Keeping the Muslim Down” by Firoz Bakhtt Ahmed, May 19th 2008, HT)

A Citizen’s Review Report (7th Jan, 2008) on “India’s Progress on the MDGs” showed that 55% of Muslims have never attended school compared to national average of 41% (rural). In Bihar 86% of enrolled children drop-out by Standard VI. 99% Dalit children study in public schools & inadequate facilities and infrastructure as major problem for access to health & education.

There is another report by Comptroller & Audit General (CAG) showing that SC, ST’s literacy rate is very much poor in Tamil Nadu. For ST males’ literacy rate is 32.18% and for female it stands at 31.77%. Also the pass percentage of SC, ST students in 10th & 12th standard examinations has dropped since 2002-03 and is much lower than the overall pass percentage during 2002-06 and this needs immediate attention in the educational development of the SC, STs. This is due to poor monitoring & poor implementation of the welfare schemes launched for SC, STs, humiliating Dalits in schools/colleges & delaying the scholarships for SC, STs students.

The total budget for ‘Sarva Shiksha Abhiyan’ stands at Rs.131 billion and the scheme’s operation has come under severe flak from India’s official auditor, the Comptroller and Auditor General (CAG). Out of Rs 8004.71-crore allotted for the development work of “Elementary Education” and ‘Sarva Shiksha Abhiyan, only Rs 2,324.99 crore was spent through record. For the rest of money spent on the development work there is no record available. Human Resource Department is clueless about the rest of money! Which means the rest of money was simply siphoned off to other schemes. Gujarat, Rajasthan governments comes first in misusing the funds! From the funds of Sarva Shiksha Abhiyan party functions were organized & money was simply wasted on “Puja” in temples, thinking this will help in improving literacy rate!

Almost everytime, receiving green signal from ‘World Bank’ about the next installment for Sarva Shiksha Abhiyan, Indian political leaders have started celebrating and why they shouldn’t? But if this Sarva Shiksha Abhiyan couldn’t fulfill the targets of giving education to all, this entire scheme has definitely made many policy makers millionaires! “Education for All Children” movement has proved “Money for All Politicians” nothing else. A survey conducted by “Outlook” (April 7th, 2008) showed that 71% villagers said there is high corruption in all the Government schemes , the benefits don’t reach at them. India’s external debt is already at 201.4 billion USD, but where the development is seen, in the houses of ministers? Isn’t it?

There is another worrisome part, an emerging trend whereby children belonging to different social backgrounds are attending different kinds of schools. In Andhra Pradesh, there is a divide between the government primary school (GPS) located in the Dalit basti and the GPS in the forward caste hamlet — only SC students attend the former school, while the latter has very few SC students. The youth in the SC colony in the village categorically stated that even if children from the SC colony try to seek admission in the other GPS, they are discouraged and told to attend the school in their own colony. A similar divide was observed in Tamil Nadu between the GPS and the schools run by the Adi-Dravida Welfare Board. (“Beyond the numbers” study conducted by Vimala Ramachandran)

Fifth ‘All India Educational Survey’ (AIES) showed that approximately 94% of the national population had access to a primary school within 1 km of their habitation. But how many of these children complete primary education? This should be our main concern. Merely constructing buildings with no teacher is not useful.

All state governments are washing their hands by giving different reasons like “Hard to reach”, “Most difficult to access group” for the children who are not attending schools right now. No government is ready to take the responsibility that their welfare schemes are nothing but eye-wash/fraud in the name of welfare! There is money, money & money everywhere but before spending, the governments must make the schemes efficient so that social, economical, educational status can be raised. One survey showed that about 40% of the money borrowed from ‘World Bank’ directly or indirectly goes back to them as consultancy fee , i.e. Indian Governments/policy makers are not capable to chalk out proper plans. Almost all the Government schemes have proved paper tigers only!

There is an urgent need to support social reformation of SC/STs, Muslims and other minority communities to promote literacy.

Lessons to be learnt:

More than 40% students (50-60% in case of Dalits) are still out of schools, despite HRD’s claims of getting successful in enrolling more than 96% students in schools.Not all the schools have toilets, which affects chances of many girls’ education.Literacy rate has not improved a bit! Sub-Saharan Africa countries where people don’t even have enough food the literacy rate is higher (61.2%) than India (61%) - Source: 2000-2004 data from the “Education for All Global Monitoring Report”, UNESCO (2006)Over 71% schools have less than 3 teachers.Only 38% class V students in rural areas can divide simple numbers. In Tamil Nadu, only 19% children of class V can read a sentence clearly while in Uttar Pradesh it is 14%, according to annual audit by education NGO Pratham (16th January, 2010).There has been a huge misuse of funds, which needs to be controlled. Monitoring and supervision of ‘Sarva Shiksha Abhiyan’ program failed totally.

it was disconcerting to know that 52%muslim were living below povertyline in india compared with the rest of indians whose percentage is higher.one could only conclude there was discrimination.i hope it is not true.

To improve quality and percentage of literacy across India, there is a lesson to be learned from the states of Kerala and West Bengal.

Let me clarify at the outset, I am not from either Kerala or West Bengal; nor do I support CPI / CPM or their communist/marxist model of governance.

How these two states gained more than 90% literacy rate, compared to less than 50&% or even less than 40% is some states is a POINT-TO-PONDER.

I learnt, Kerala and West Bengal have a system (which is not a secret), where "old textbooks" are re-used / re-cycled AND given to new-comers who want to learn. If rest of India could learn / ape / clone this "open-secret" of recycling "old textbooks", a lot can be achieved w.r.t. literacy / education, within the next decade.

I would request / invite readers comments from Kerala and West Bengal, to share more secrets of how they gained highest literacy rate? Thank you.

Proceedings of the 104th State Level Bankers’ Committee Meeting for the State of West Bengal held on 29.9.2008

The 104th meeting of the State Level Bankers’ Committee, West Bengal, was held on 29.9.2008 at The Hotel Hindusthan International where performance of the banks up to the quarter ending June 2008 was reviewed. Sri P K Gupta, Chairman & Managing Director, United Bank of India presided over the said meeting. The meeting was, inter alia, attended by Sri T M Bhasin, Executive Director, United Bank of India, Dr G D Goutama, Principal Secretary, Micro , SSE & Textiles, GoWB, Sri P Mohanaiah, Chief General Manager, Nabard, Sri C D Srinivasan, General Manager, Reserve Bank of India, Sri K S Singhwan, Chief General Manager, SIDBI. Besides, many other top executives of Govt. Departments, banks and NABARD participated in the meeting. A list of participants of the meeting is enclosed.

At the outset Sri A S Bhattacharya, General Manager (RM, Board & Coordn.), UBI welcomed all the participants to the meeting and extended his sincere thanks to Sri P K Gupta, CMD, UBIand Chairman of SLBC (WB) for taking the SLBC to a new height to be maintained by all of us in the days to come. Sri Bhattacharya then requested Sri Gupta to give his inaugural address.

Shri P.K. Gupta, CMD, UBI and Chairman of SLBC (WB), on the eve of Durga Puja, greeted and expressed his good wishes to all the dignitaries / participants of the meeting. Sri Gupta on the occasion of his last SLBC meeting expressed his happy feelings in discharging his responsibilities both as CMD of UBI and Chairman of SLBC (WB) during last 41 months. His inaugural speech, inter alia, included the followings:

He feels very much fortunate to have Dr Asim Dasgupta as the State Finance Minister who has always shown keen interest in SLBC matters and participated actively in the meetings. His guidance and directives have always benefited the SLBC to move in right direction.

Participation level in the SLBC/Spl. SLBC meetings has always been of high order and personalities like Sri P K Bansal, State Minister of Finance, Govt of India, Sri Leeladhar & Sm Usha Thorat both Dy Governor of RBI, Sri Y S P Thorat, Chairman, Nabard and many other dignitaries have attended SLBC meetings and took part in purposeful and focused discussions.

Participation level of the bankers has also been good and discussions were serious and focused.

The smaller groups which were formed for specific purposes came out with good recommendations.

The souvenir that was brought out in the well organized 100th SLBC meeting, contained wealth of information including history of SLBC.

Action points of the State Level Review Meeting taken by Dr Asim Dasgupta, Hon,ble Finance Minister of WB with the selected bankers on 23.9.2008 have been intimated to all members.

1181797 number of farmers of the State got the benefit of Agril. Debt Waiver & Debt Relief Scheme for an amount of Rs 1461.58 crore and became eligible for fresh finance along with other 8.32 lac farmers whose loans were prudentially written off by the bankers earlier. He complemented all the banks for the excellent job done by them in the matter.

Out of 4419 Grievance applications received, 4100 applications have been disposed of within Sept 2008.

Under Annual Credit Plan 2008-09, overall achievements in the 1st quarter have been 16% as against 19% achieved last year. Under Agril. Sector, achievements have been 11% compared to 16% achieved last year. A big boost is required to be given by the bankers in issuing KCCs during the coming Rabi season.

Achievement under Micro and Small Enterprises has been 12% which is at par with the achievements of last year. In Service Sector the achievement has been 21% as against 24% achieved last year.

Sri Gupta being a banker will always remain a banker and will continue to guide us in the coming days also.

SLBC is a forum for useful discussion between the bankers and Govt. Deptts which should be made full use of by effective participation from both. But, representatives of only a few Govt. Deptts are present in the meeting and as a result the view points of the respective Govt. Deptts will not come for discussion.

The present GDP growth rate of 9% plus in the country is to be sustained.

The decline in recovery percentage from 64% as on 30.6.2007 to 58% as on 30.6.2008 is a real cause of concern and the reasons for such drift in recovery has to be found out.

Sri P Mohanaiah, Chief General Manager, Nabard highlighted the followings in his deliberations:

The bankers have done a commendable job in implementing DWDR scheme. As against a total of more than 11.00 lac farmers benefited under the scheme, only 4000 grievance applications have come which shows the high efficacy with which the bankers have worked.

The bankers are now to implement the second phase of the scheme i.e. providing fresh loans to the farmers made eligible for fresh finance under the scheme.

During last four years 566 branches were opened in the State out of which only 45 branches were opened in rural areas. He expressed hope that by implementing the recommendations of the Task Force set up for extending banking facilities in unbanked GPs, the imbalance will be removed.

With a view to speed up the process of Financial Inclusion, bankers should go for opening of accounts of the individual SHG members and also the accounts under NREG scheme.

The SHG bank linkage should be widened and deepened in respect of both coverage and quantum of assistance.

Bankers should regularly submit report on Agril. Finance (Part B) to SLBC within 7th of the next month so that SLBC in turn can submit consolidated report to RBI/Nabard in time for onward submission to Govt. of India.

Nabard has set up two funds with a corpus of Rs 500 crore each – Financial Inclusion Fund and Financial Inclusion Technology Fund advantage of which can be taken by the bankers.

Each Rural & Semi Urban branch should have at least one Farmers’ Club.

Bankers should come forward to set up RUDSETI type institutions in each district of the State.

The deliberation of Sri C D Srinivasan, General Manager, Reserve Bank of India inter alia included the following points:

The backdrop of the present meeting was drawn in the State Level Review Meeting held at Writers’ Buildings on 23.9.2008. The discussions of the meeting taken by the Hon’ble Finance Minister, Govt. of W B were crisp, pointed and focused as well. The decisions will be communicated to all the banks.

At least 70-75% of the Annual targets under various sectors of ACP 2008-09 shall have to be achieved by December 2008. There will be a set back if targets under Agril. Sector is not achieved as the State has already fallen behind the other States in extending credit to Agril. sector. The second Green Revolution may take place in the Eastern part of the country in which West Bengal should be the major contributor.

A study conducted by Jadavpur University reveals that the 100% Financial Inclusion as claimed in Hooghly district is only on arithmetical basis; let the Task be completed in real sense within Dec 2008. The other eight districts identified for 100% Financial Inclusion will achieve 90% inclusion by December 2008. The remaining ten districts will achieve 70% of the Task. RBI, Kolkata will provide a copy of the model followed in Karnataka for 100% Financial Inclusion to SLBC.

In an Agril. Fair organized at Malda where banks. RBI & Nabard participated about 250 A/cs were opened on the spot. Similar exercise was taken up by RBI in Howrah district and A/cs were opened on the spot.

RBI is going to organize a special camp in Ultadanga Slum Area on 16.9.2008 where accounts of Slum Dwellers and Migrant Labourers will be opened.

Although all the blocks of West Bengal are having one or more branches, more branches need to be opened in underbanked border blocks.

Attendance of Govt. Officials in SLBC/ DCC meetings is not encouraging and most of the DCC meetings are not attended by the District Magistrates.

Bankers often do not submit reports on Financing SME sector in time which should be ensured within 30th of the next month.

In five districts of West Bengal viz. Paschim Medinipur, Jalpaiguri, Burdwan, Coochbehar and Darjeeling specialized SME branches have not yet been opened which too should be ensured.

Confirmation of Proceedings of the 103rd meeting of SLBC for West Bengal

Other important issues including approval of the model Scheme for replacement of existing Auto Rickshaw by a new one run on LPG

During the presentation/discussion the following contribution came from the bankers, other Financial Institutions and a few Govt. Deptts present in the meeting:

Sri A K Ghoshdastidar, General Manager, SBI informed the house as under:

The bank is going to set up a RUDSETI at Mejia under Bankura District within 15.10.2008.

The CD ratio of the bank in the State has almost touched the national average of 73%.

Special credit camps are being organized to credit link SHGs and 800 such SHGs have been linked on 21.9.2008 with an amount of Rs 1.18 crore.

The bank has decided to open about 150 branches in the State in Rural and Semi Urban areas.

Sri Ashok Datta, General Manager, Allahabad Bank assured the house that the bank will make sincere effort to achieve the targets set by the Hon’ble Finance Minister of WB within Dec 2008.

Sri B R Sawant Chief Officer, UCo Bank informed the house that the CD ratio of the bank has improved to 77%. The bank will also attain the targets set by the finance Minister.

Sri P Sridharan, General Manager, Central Bank of India pointed out that the bank has already made substantial disbursement under Agriculture sector and the position has also improved a lot since July 2008. The bank has already rephased poultry advance for an amount of Rs12 crore and extended fresh finance to the extent of Rs2.00 crore till now.

Sri Vijay Mehta, General Manager, Bank of India informed the house that the bank has already achieved 90% of the target under SSI sector. He also desired SLBC to give directives in respect of opening of branches in unbanked GPs instead of keeping the issue open.

Sri B K Dasgupta, Consultant, Panchayat and Rural Development Deptt., Govt. of WB mentioned the followings in his deliberations:

There should be separate targets for Nabard SHGs and SGSY SHGs instead of aggregated target allotted at present.

Out of total 233000 SHGs formed under SGSY, 175000 are in Grade -1 stage and 42000 are in Grade –II stage. There are huge backlog in grading exercise.

Project lending has not received the required boost and so far only 12000 groups have been covered with Project Lending.

The ratio of corpus is to C/C limit is very low – as against total deposit of 212 crore, C/C limit of Rs 336 crore only has been allowed.

State Govt. will subsidize expenses for development of infrastructure for setting up of RUDSETIs in each district. Multiple RUDSETIs may be set up in bigger districts for better coverage.

Mr D L N Murthy, DGM, Corporation Bank assured the house that his bank will achieve the targets set by Finance Minister within Dec 2008

Dr Dipak Palit, Advisor, National Housing Bank informed the house that apart from refinancing, the bank is also extending housing finance to SHG members through NGOs. NHB is also extending finance to joint venture companies for construction of Flats for LIG and MIG.

Sri P Banerjee, Chief Executive Officer, KVIB informed the house that during the year 2007-08, 7334 proposals under REGP was sanctioned by the banks in West Bengal which is the best compared to other States. He also informed that about 2500 proposals of Woolen Garment scheme were sanctioned in a cluster located in 24 Parganas (N) district.

He further apprised the house that the proposals under REGP scheme which were sanctioned on or before 31.3.2008 but could not be disbursed due to some reason or other, should be considered as fresh proposal under PMEGP for the year 2008-09 subject to fulfillment of modalities of PMEGP scheme. Formalities in this respect will be completed by KVIB/KVIC.

Sri Ambarish Nanda, Chairman, Bangiya Gramin Vikash Bank informed the house that the bank has already achieved 26% of the target under ACP 2008-09 as on August 2008. The exposure of the bank to Minority Community is 20% and to SC/ST is 19% of the total outstanding advance. By the end of 3rd quarter, the performance will improve substantially, he added.

During discussion, Sri PK Gupta, CMD, UBI and Chairman of the meeting urged upon the bankers to look into the followings:

To achieve 100% of the targets given by Hon’ble Finance Minister of WB.

For rehabilitation of Bird Flu affected Poultry units’ bankers should go by RBI guidelines in letter and spirit.

Ensure increased flow of credit to Minorities and backward classes.

RRBs and Coop Banks should prepare papers for availing of the facilities of Financial Inclusion Fund and Financial Incusion Technology Fund.

Ensure regularity in review and upgradation exercise for SHGs

The following major action points emerged out of the meeting:

100% achievement has to be made under Annual Credit Plan 2008-09 within March 2009. (Action: Banks & Govt. Deptts)

Under ACP 2008-09, 75% of the target set for Agriculture sector is to be achieved by December 2008. (Action: Banks & Govt. Deptts)

Under SSI sector achievement should be 70% by December 2008. (Action: Banks & Govt. Deptts)

70% of the target of Credit linkage to SHGs shall have to be achieved by December 2008. (Action: Banks & Govt. Deptts)

SHG coverage should be increased to 9.00 lac, out of which credit linkage should be established in 7.00 lac cases by March 2009. A regularity should be maintained in review and gradation of SHGs. (Action: Banks & Govt. Deptts and Nabard)

At least 1.00 lac fresh disbursement has to be made under Self Employment programme during the year 2008-09. (Action: Banks & Govt. Deptts)

More emphasis is to be given on flow of credit to Minority communities and outstanding advance to Minority Community at the end of March 2009 should be at least 13% of the total Priority Sector Advance. (Action: Banks )

Similar effort should be given to increase flow of credit to SC/ST and backward classes and also women entrepreneur so as to ensure inclusive growth as envisaged. (Action: Banks )

Hooghly district will complete 100% Financial Inclusion by December 2008 and other eight districts identified for 100% Financial Inclusion will attain at least 90% by the end of December 2008. (Action: Banks, Govt. Deptts & LDM)

Member banks are to follow RBI guidelines issued in respect of rehabilitation of Poultry units affected by Bird Flu and extend fresh finance to the units in letter and spirit. (Action: Banks )

Commercial Banks are to increase Crop Insurance coverage for their borrowers during the year. (Action: Banks )

Vote of Thanks

Sri T. M. Bhasin, Executive Director, United Bank of India while extending vote of thanks on behalf of the SLBC expressed that it was a great privilege to work in association with Sri Guptajee who is a nice, sweet, cool, calm and composed gentleman. He will start a new inning from day after tomorrow and IBA/ Govt. of India will get the benefit of his expertise in the days to come. Sri Bhasin also wished that the blessings of Sri Guptajee for UBI will continue as before. Sri Bhasin also extended his thanks to SLBC and all other dignitaries/ participants for making it convenient to attend the meeting and making it purposeful by their valuable deliberations and suggestions.

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